Aston Martin creditors threaten legal action

Aston Martin's creditors are threatening legal action against the carmaker after learning it plans to sell a portion of its branding and naming rights as part of a new £550 million debt financing package led by HPS Investment Partners, a BlackRock-owned private credit firm. The financing, secured in July, comprises a £450 million secured term loan and a £100 million delayed draw term loan, with an additional £100 million permitted debt incurrence capacity. A group of existing creditors owed £1.3 billion sent a 'letter before action' to Aston Martin's board on Sunday, warning they could seek to unwind the HPS transaction and block the disposal of certain intellectual property assets. The creditors have learned that part of the deal depends on the carmaker transferring a 50.1% stake of its non-automotive intellectual property to U.S. brand developer Authentic Brands Group, with the additional £100 million conditional on that transaction. HPS is also an investor in Authentic Brands Group. Aston Martin has refused to share details of the deal, leaving creditors in the dark. The carmaker has been grappling with cash pressures from weaker sales, U.S. tariffs, and soft demand in China, prompting cost cuts and fresh funding. Earlier this year, Aston Martin raised £50 million by selling the rights to use its name for its Formula 1 team to AMR GP Holdings, a cash injection from Lance Stroll, who indirectly controls AMR. The company also incurred over £19 million in net marketing expense for sponsorship in the first half of the year.