There were fears last night that LDV, the last British-owned volume vehicle manufacturer, could be on the brink of collapse unless a rescue deal is signed in the next 24 hours.
An American private equity company, believed to be Sun Capital Partners, is expected to announce a multi-million pound cash injection possibly as early as today.
The deal is believed to have the support of the Department for Trade and Industry and Advantage West Midlands.
But industry rumour and speculation last night centred on the possibility of LDV going under if the deal is delayed or does not go ahead.
Major suppliers were said to be owed large amounts of money and LDV's Bromford Lane plant in Washwood Heath is currently idle after production was suspended last week.
The company would not comment yesterday but the mood at the plant was said to be positive, with employees believing the refinancing deal will alleviate a temporary cashflow problem.
A source said there was confidence a deal would be signed barring any last-minute hitches and they did not envisage another MG Rover scenario, as LDV was regarded as a profitable concern.
LDV had previously said that 700 laid-off workers had been paid and cheques to suppliers were going out on a fortnightly basis.