Aston Martin creditors threaten legal action over branding rights deal

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According to the Financial Times, creditors owed around £1.3bn have issued a "letter before action" to the British luxury carmaker's board, warning they could seek to unwind the financing arrangement and block the disposal of certain intellectual property assets.

The dispute centres on a £550m debt financing package secured in July and led by funds managed by BlackRock-owned HPS Investment Partners. The package includes a £450m secured term loan, a £100m delayed draw term loan and a separate £100m permitted debt incurrence facility.

The Financial Times reports that part of the agreement requires Aston Martin to transfer a 50.1% stake in its non-automotive intellectual property to US brand developer Authentic Brands. The additional £100m in financing is reportedly conditional on the branding rights transaction proceeding. HPS is also an investor in Authentic Brands.

Some existing creditors argue that the transaction could affect the assets underpinning their loans and have warned they may challenge the deal in court. The report also states that Aston Martin has not shared full details of its agreement with HPS, leaving some creditors seeking greater clarity on the structure of the transaction.

The proposed transaction comes as Aston Martin continues to manage financial pressures driven by weaker vehicle sales, US tariffs and softer demand in China. The 113-year-old luxury marque has been pursuing cost-cutting measures and new funding as it works to strengthen its balance sheet.

If completed, the deal would underline the growing strategic value of brand assets beyond marketing, with intellectual property increasingly being used to unlock financing and support corporate restructuring.