Aston Martin Financing Plan Sparks Creditor Revolt

Some of Aston Martin's creditors have threatened legal action after learning of the company's plan to sell part of its intellectual property rights as part of a new financing deal.

According to the Financial Times, some creditors, to whom the company owes around £1.3bn ($1.74 bn), have sent a pre-litigation notice to the company's management.

The creditors object to an agreement under which Aston Martin secured £550m ($737m) in debt financing in July from funds managed by HPS Investment Partners, a subsidiary of BlackRock.

The transaction reportedly includes the sale of a 50.1% stake in Aston Martin's non-automotive intellectual property rights to US company Authentic Brands Group.

According to media reports, an additional £100m ($134m) of financing is contingent on completion of the transaction.

Aston Martin has declined to comment. The British luxury carmaker is facing cash flow pressures because of weaker sales, US tariffs and declining demand in China. The company is continuing cost-cutting measures while seeking additional sources of financing.

(Reuters, mja)