The car firms latest filed accounts show they have secured a £600m bank facility that will enable them to keep trading until the end of next year.

JLR were within days of defaulting on loans when it negotiated an extension which will hopefully secure hundreds of jobs at its Halewood plant

JLR was within days of defaulting on its loans before it negotiated an extension with its syndicate of more than 20 banks.

JLR is still hoping the government will underwrite a £340m European Investment Bank loan which will be used to develop new models such as the 60 miles per gallon LRX concept vehicle.

Both sides are insisting that the talks are still ongoing at its Halewood plant, although owners, Tata Motors are understood to be refusing to accept the terms the Government want to impose on the loan.

Senior strategist at BGC Brokers, Howard Wheeldon, said he believed the conditions included restrictions on the Governments willingness to underwrite a £340M loan offered by the European Investment Bank (EIB) which would help partly finance the development of new greener cars.

It is also thought that demands include Tata invest millions of pounds more into JLR on top of the £940M it has already promised since taking over the company from Ford last year.

Ministers are also said to be demanding high level management control, including the right to choose a chairman and veto board decisions.

Howard Wheeldon described the government’s demands as “backdoor nationalisation” after the government said it would only guarantee £175m of £340m in loans to JLR approved by the EIB and for only six months. He also claimed the government demanded payment of a 15% premium for its role. With the Government backing, JLR would then have access to a further £450M in commercial bank loans.

The EIB today approved a whopping £340m package for Jaguar Land Rover and a £370m (400m euros) package for Nissan’s UK and Spain operations.

Jaguar Land Rover had applied for money to invest in research and technology to develop more environment-friendly cars at its Midlands and Merseyside plants. I personally think this is a bit of a lie and they desperately require the money just to stay afloat.

Lets hope they go back to building good old utility vehicles rather than these Chelsea tractors they have been churning out recently. Who needs a 4×4 in London?

According to government sources, the firm has met the loan criteria.

A loan of £364m (400m euros) will also be split between Nissan’s plants in Sunderland and Spain, bringing the UK total to £455m (500m euros).

Jaguar Land Rover said it could be a number of weeks before any cash was handed over.

Sources at the company were more cautious, stressing that whilst they were confident the money will be approved, they did not want to assume it would.

If the EIB loan is approved by its board when it meets in Luxemburg, it would then need some form of government guarantee before any monies were disbursed.

They add the deal is likely to be approved by the board of the EIB when it meets in Luxembourg next week.

Business Secretary Lord Mandelson has set aside £2.3bn (€2.5bn) in support for the car industry which is mostly made up of loan guarantees as well as direct aid to car makers.

The criteria for any EIB loan require car makers to invest in new greener technology to lower emissions during vehicle production and driving.

The car industry has been particularly hit by the recession with UK sales down 22% and car production plummeting 59% on the same time last year.

Jaguar Land Rover cut 450 staff in January 2009 and are seeking further 300 salaried redundancies from its 14,500-strong UK workforce. Some 50,000 British jobs are dependent on the firm.

Staff are essentially working a four-day week following an agreement with trade unions. Hourly-paid employees are working a 35-hour week and a pay freeze has been agreed on the guarantee of no compulsory job cuts for two years.

Based in Gaydon, Warwickshire, it employs about 15,000 people in Castle Bromwich, Coventry and Solihull in the West Midlands and Halewood, Merseyside.

Some 12 million people are employed in the European car industry, including 800,000 workers in the UK.