Aston Martin in financial strife?
Middle East owners facing major money trouble putting British brand under a cloudThe future of iconic British sportscar brand Aston Martin is uncertain with news that The Investment Dar, the Kuwait-based firm that owns half the company, struggling to refinance its debt. Britain's Guardian newspaper is reporting that The Investment Dar is hurriedly trying to reorganise its finances with its creditors and investors.
The Investment Dar purchased 51 per cent of Aston Martin in March 2007 as part of a consortium that included David Richard; boss of racing operation Prodrive that co-owns FPV and runs Aston Martin's Le Mans sportscar program.
The group paid US$925m for the car company made famous by James Bond.
The wealth fund has hit trouble as the economic crisis continues to cause problems in Kuwait. At the same time Aston Martin sales have fallen because of the global credit crunch, forcing the company to cut 600 jobs.
In April The Investment Dar reportedly defaulted on a US$100m Islamic bond and has now agreed to freeze claims with its creditors and investors until the end of the year to try and get a rescue package sorted, according to the newspaper.
The Investment Dar may be forced to sell assets to try and cover its financial commitments but the company is, unsurprisingly, putting on a brave face publically.
"The Standstill Agreement represents good progress in the Company's restructuring process," said company Chairman and CEO, Adnan Al Musallam, in a public statement.
"TID's Board of Directors and the Management remain wholly committed to the Standstill Agreement and to working constructively with the Coordinating Committee towards a consensual restructuring plan. This Standstill Agreement is an important step that will assist us in formulating the consensual restructuring plan expeditiously. We thank the Coordinating Committee and their advisers for their commitment to our mutual objectives," reads the statement.
The news comes only weeks after Aston Martin revealed its new Rapide super sedan at the Frankfurt Motor Show and Richards claimed plans were on track for the company to build its own Le Mans prototype racing car for the 2011 Le Mans 24 Hours.
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