THE administrators of Huntingdon-based Lola are confident that the composite part of the business will be sold within the next few weeks.

Mark Newman, who has been looking after Lola since CEO Martin Birrane called in the administrators CCW Recovery Solutions LLP on May 16, told The Hunts Post that negotiations for Lola Composites Limited are "at a detailed stage".

He said: "The administrators of Lola Composites Limited remain confident of a sale of the business, with it the retention of the remaining staff by the purchaser.

"Negotiations are at a detailed stage, with lawyers instructed by the administrators and the potential purchaser."

Mr Birrane said the latest economic downturn and HMRC's decision to stop funding research and development tax credits - worth about £1.4million - forced him to put the business into administration.

More than 80 employees were made redundant but some were asked back to work in August after new orders were secured in the composites business.

Lola Cars International Limited will continue to trade in administration while the search for a buyer continues.