To Survive, Aston Martin Had To Sell The Majority Of Its brand.

Aston Martin has sold 50.1% of its non-automotive branding rights to Authentic Brands as part of a £550 million financing deal. This move has triggered a legal backlash from creditors, who argue that shifting these intellectual property assets into an offshore structure unfairly compromises their collateral and violates existing debt agreements.

Aston Martin faces a legal challenge from creditors over a £550 million financing deal that moves non-automotive branding rights into an offshore entity. Bondholders argue this transfer violates debt agreements and improperly strips away core collateral.

The company arranged a £550 million financing led by HPS Investment Partners, built around a £450 million ($606 million) secured term loan plus a further £100 million ($135 million) that can be drawn later. Part of that extra funding hinges on transferring a 50.1 percent stake in Aston Martin’s non-automotive intellectual property to Authentic Brands, giving the Reebok and Brooks Brothers owner effective control over future lifestyle licensing.

Creditors are challenging a £550 million financing deal where Aston Martin moved non-automotive branding rights to a Cayman Islands subsidiary. They argue that HPS Investment Partners’ dual role as lender and investor in Authentic Brands, combined with board overlaps, creates a conflict of interest that improperly strips away valuable collateral.

Creditors argue this pushes valuable assets into a new box they do not have claims over if the company ever falls into formal insolvency, and a separate Bloomberg account says funds managed by an Authentic Brands UK arm joined HPS in providing the £450 million loan, deepening the financial ties between lender, new IP co-owner, and the carmaker.

Aston Martin raised £50 million by selling F1 naming rights to an entity controlled by Lawrence Stroll, effectively acting as an internal capital injection rather than a third-party sale.

Bondholders holding £1.3 billion in debt have issued a “letter before action” to Aston Martin, threatening to sue to reverse a £550 million financing deal with HPS. Creditors argue that shifting core branding rights to an offshore entity unfairly strips away collateral, and they are seeking a freezing injunction to prevent further asset divestment as the company struggles with high development costs and recent product recalls.

• See More: Aston Martin Secures A Loan Worth 550 Million Pounds