Aston Martin - comment

The Aston Martin situation is coming to a head. With over half of the bonds (we don't yet know how much of each series), the bondholder group around Arini, BlackRock and Sculptor can deliver a deal. The company, advised by Lazard, and bondholders, advised by Akin Gump and now also Jefferies, are set to engage after bondholders indicated their willingness to provide financing last week. That willingness, however, will be on their own terms, considering their holdings and after shareholders put in the latest £50m in the form of debt and the latent concern that, even though the documentation is strong on IP migration (brand name), new debt could prime existing bondholders. If we were bondholders, we'd certainly join the Coop and be on the lookout to get our pro rata share. The 2024 indenture runs three tiers: simple majority of each series for non-sacred amendments; 66⅔% to release all or substantially all collateral or materially alter lien priority. If the group won't need everybody to deliver a deal, why share the spoils? This coop looks defensive now, but we are concerned it will turn aggressive.