An ad hoc group of bondholders in UK luxury carmaker Aston Martin has entered into a cooperation agreement, with investment firms Arini and Sculptor leading the group, according to 9fin sources.
The group comprises senior secured noteholders representing more than 50% of Aston Martin’s senior secured notes, the sources said. Participation is open to all senior secured noteholders, and the group is inviting other investors to join the co-op, the sources added.
The group is working with law firm Akin as legal advisor, as 9fin reported earlier this week.
Bondholders have been organising as Aston Martin faces increasing financial pressure following a series of profit warnings last year, continued cash burn, and mounting funding needs. The company is exploring options to raise additional capital while pursuing cost-cutting measures and reducing capital expenditure, as 9fin previously reported.
“With holders of more than half of Aston Martin’s senior secured notes already signed up to the co-op, the group is in a strong position to negotiate collectively and protect its interests should the company’s financial position deteriorate further,” said one of the sources. “The co-op will also provide a framework to respond quickly if Aston Martin pursues new financing or potential...
