Investment Dar 'struggling to refinance its debts'
28 September 2009

Fears have been raised over the future of Aston Martin after Kuwait’s Investment Dar, which owns half the company, admitted problems refinancing its debt.

Investment Dar has been hit hard by the economic downturn and said it has signed an agreement with investors and creditors to freeze claims, which would buy more time for restructuring.

A consortium led by Dave Richards bought Aston Martin from Ford in 2007, with the agreed price of £480m for the majority stake.

The Dar’s 51 per cent stake was said to be partly funded by a number of international banks which had agreed to a sharia-compliant loan.

Kuwait’s central bank appointed a temporary administrator to oversee business at Investment Dar following reported debts of more than $3bn.

The company said over the weekend a standstill agreement has been reached and it had agreed to complete "a variety of undertakings to the consenting banks and investors, including the appointment of a chief restructuring officer".

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Aston Martin said nothing had changed at the company. “We still have strong ongoing support from our shareholders,” said a spokesman.

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Comments
3

28 September 2009

TATA motors should buy them and make the Rapide in one of their West Midlands plants...

29 September 2009

If this great brand are in trouble its a sad day for all car enthusiasts.Aston Martin is the most desirable car manufacturer imho.

29 September 2009

Maybe Magna should buy them. They already make the Rapide in their Austria plant; would be a way to protect the contract. Besides, AM's boss, Dr Bez, is a German and AM's engines are made in Cologne. All we need is for Magna to offer a nominal sum, say £5m to buy it, and have UK govt loan it say £500m to fund new projects, repayable over four years.

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