Creditors holding £1.3bn in debt challenge financing terms, citing asset transfer concerns and potential breaches of existing agreements.
Aston Martin faces potential legal action from bondholders over its £550m financing deal with HPS Investment Partners. The arrangement includes a £450m term loan and a £100m facility, but creditors claim it breaches existing debt conditions and removes assets from their collateral pool.
The bondholders, owed £1.3bn, argue the deal transfers intellectual property to Authentic Brands, where HPS holds a stake. The £100m facility depends on this transfer, which creditors say limits their access to assets. A ‘letter before action’ has been sent to Aston Martin’s board.
Aston Martin has not disclosed full terms of the HPS agreement, leaving creditors without clarity. The dispute centers on whether the deal unfairly prioritizes new lenders over existing bondholders.