India's Tata Secures Private Funding for Jaguar

London August 11 2009; Jim Pickard writing for the Financial Times reoported that Tata, the Indian owner of Jaguar Land Rover, has dropped its demands for a large bailout by the British government after obtaining private sector funding for the struggling carmaker.

The group said it had secured direct bank loans as well as guarantees which would allow it unlock funds from the European Investment Bank and help protect its 15,000-strong workforce.

Jaguar Land Rover, which was bought from Ford by Tata for £1.7bn in June last year, ran into difficulties amid a global slowdown in demand for cars.

It first approached the government for help in September last year. Ministers eventually offered a £170m bridging loan to the company but despite months of negotiations the details were never agreed.

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