A refinancing deal for vanmaker LDV was thought to be imminent last night - but one supplier said his company had temporarily stopped supplying parts to the Washwood Heath factory.

LDV, the last Britishowned volume vehicle manufacturer, insisted on Monday that it was not in financial difficulties despite suspending production of its new Maxus range of vans and sending about 700 workers home on pay.

But industry sources told The Birmingham Post they feared the company was suffering knock-on effects from the MG Rover crash.

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Jittery suppliers who were left high and dry after the Longbridge fiasco in April were becoming reluctant to extend credit lines to LDV, even though there are no immediate comparisons between the two operations.

However, one supplier said the most recent monthly payment due to his company had failed to materialise and so deliveries had been stopped.

LDV itself said on Monday that it was still sending cheques out on a fortnightly basis and any non-payments were due to administrative errors.

Someone familiar with developments at the vanmaker said the new financing deal - which could announced as early as today - would deal with both the company's shortand long-term financial requirements.

"It will be a significant introduction of new money.

" It clearly needs another investment to get it to the next stage," the source said.

LDV benefited from a refinancing package in 2004 in which its private equity backers - including 3i, which supported a management buy-out in 1993 - pumped in another £90 million of funds to help the company get the vitally important new Maxus on the road.

The new vehicle was originally to be designed and developed in a joint venture with Korean group Daewoo. But LDV had to shoulder the bulk of the £500 million cost itself after Daewoo went into receivership.