Key facts
- Aston Martin creditors are threatening legal action over the planned sale of branding rights.
- The sale is part of a new debt financing package led by HPS Investment Partners.
- Creditors are concerned about the transfer of a 50.1% stake in non-automotive intellectual property to Authentic Brands.
- The automaker has been grappling with cash pressures due to weaker sales and other market factors.
A group of Aston Martin's creditors has threatened legal action against the luxury carmaker, citing concerns over its plan to sell a portion of its branding and naming rights as part of a new debt financing package. The Financial Times reported that some existing creditors, collectively owed £1.3 billion, sent a "letter before action" to the company's board. They warned of potential actions to unwind a recent £550 million debt financing deal led by funds managed by BlackRock-owned HPS Investment Partners and to block the disposal of certain intellectual property assets.
The report indicates that the transaction involves transferring a 50.1% stake in Aston Martin's non-automotive intellectual property to U.S. brand developer Authentic Brands, which is also an investor in HPS. This branding rights transaction is a condition for an additional £100 million in financing under the HPS package. Some creditors are reportedly in the dark about the specifics of the deal with HPS, as Aston Martin has declined to share details. The automaker has been facing financial pressures stemming from weaker sales, U.S. tariffs, and soft demand in China, prompting cost-cutting measures and a search for fresh funding.