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Jaguar Aims to Acquire Loan of 800 Million Pounds

By Motortrend India Staff   |   14 April,2009

Jaguar Land Rover is presently owned by Tata Motors. The car manufacturer is now in talks with the British Government to acquire a loan of 800 million pounds. The aim to acquire the loan is credited to the fact that the company wants to be on stream on put an end to job lay-offs. This would probably save about 15,000 jobs in the company.

According to official industry sources the negotiation between the company and the government was at a very delicate stage. This is because the government is not sure whether the car manufacturer would be able to provide sufficient security to the government as well as a syndicate of commercial banks. For the loan purpose the syndicate of commercial banks is led by Royal Bank of Scotland and Lloyds.

Apart from the 800 million pounds the car manufacturer is negotiating on, Tata Motors is also to invest another 100 million pounds.

At present the government has asked Jaguar and Land Rover to give a security in return of the approved loan of 340 million by the European Investment Bank (EIB). The bank has approved the loan but still it denies giving the loan to Jaguar until the state underwriting are in place.

Tata bought Jaguar Land Rover from Ford in for 1.15 billion pounds in June last year. The group was profitable but sales collapsed with the deepening of the banking crisis.

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