Oleg Deripaska's troubled UK vanmaker business LDV has applied to go into administration as it is in danger of collapsing.
If LDV goes into administration it will be the first vehicle manufacturer to do so during the current recession. The fall would have an impact on its suppliers.
After failed attempts to get emergency funding from the government in February, LDV will continue to search for funding for its plans to produce electric vehicles.
The chairman of LDV's Russian owner Gaz, Erik Eberhardson, is reported to have said that a management buyout is the best option to save LDV.
Weststar, an Asian company who was on the verge of buying LDV, may not be able to buy the business before it goes into administration. Weststar, a Malaysian vehicle importer, trader and sub-contractor, had an alliance with LDV.
Russian oligarch Oleg Deripaska bought the UK business two years ago.
LDV's 500 employees have been told they may not be paid beyond the end of last week.
