Aston Martin Secures £550 Million Lifeline Amid Debt Dispute

Luxury carmaker Aston Martin has secured a £550 million financing package from private credit firm HPS, despite strong objections from a group of its existing lenders, as the company seeks to strengthen its finances amid mounting losses and a debt burden exceeding £1.5 billion.

The package consists of a £450 million term loan, with an additional £100 million available if required. Aston Martin said the funding will improve its liquidity and provide greater financial flexibility to support current and future vehicle programmes.

However, the deal has sparked a dispute with several creditors, who argue that the financing breaches the terms of the company’s existing borrowing arrangements by placing key assets beyond their reach. A group representing around two-thirds of Aston Martin’s senior secured debt had urged the company to consider alternative financing proposals before proceeding.

The latest funding comes as Aston Martin continues to face significant financial pressures, including weaker demand in China and the impact of US tariffs. The company has issued several profit warnings over the past year, increasing investor concerns over its ability to raise fresh capital.

Despite the criticism, Aston Martin completed the transaction, with the new loan carrying an interest rate of around 10%. The company expects the deal to increase its available liquidity from £230 million to approximately £340 million.

The move highlights the growing role of private credit in corporate financing, particularly for companies facing limited access to traditional funding markets, while underlining the financial challenges still confronting one of Britain’s most iconic automotive brands.

via FT