One of the largest creditors of Volta Trucks is thought to be in advanced discussions to buy the UK-based company out of administration.

Volta’s administrator, Marcel & Alvarez, declined to comment but Sky News reported that New York-based Luxor Capital Group was closing in on a deal to buy the business and salvage hundreds of jobs.

It said that an agreement could be reached in the coming days, although sources also warned that the timetable could slip.

Last month Alvarez & Marcel said it was searching for a potential buyer for the electric truck maker to secure its future.

Volta Trucks said it had faced challenges since it started in 2019 and the move by its battery supplier to file for bankruptcy had had a significant impact on its manufacturing plans.

It filed for bankruptcy in Sweden before its English arm entered administration days later.

The move placed 850 jobs in danger, of which 600 were in the UK where the group had opened a service hub in North London.