Aston Martin - comment

We agree with the stance being taken by other creditors and share their concerns that the transfer of assets outside the existing bondholder collateral package appears to contravene the existing documentation. The reported transfer of a majority stake in Aston Martin’s non-automotive intellectual property rights to Authentic Brands, linked to the additional £100m delayed draw facility, further highlights the concerns around the new financing structure and the impact on existing creditors.

While the £550m refinancing with HPS has secured the near-term future of the business by removing immediate liquidity risk, the trade-off for existing bondholders is a materially weaker recovery position due to the increased structural subordination created by the new capital structure.

https://www.ft.com/content/48cd3b97-dc85-4732-8428-58fd8bfe5958?syn-25a6b1a6=1