Aston Martin out of cash as Arab owners in trouble
The Aston Martin luxury-sports carmaker is in trouble after the Kuwaiti “sovereign wealth fund” that owns 51% of the luxury carmaker admitted it was struggling to refinance its debt.
According to the British Guardian newspaper, Kuwaiti owners Investment Dar is one of many retarded banks and investment houses in that country to run into financial trouble during the recession. The losses in overseas investments incurred are too high to even be covered by rising oil prices.
The unfortunate Aston Martin outfit was sold by U.S. owners Ford in March 2007 just before the recession hit, to a consortium led by former racing driver Dave Richards, investment banker John Singers, Investment Dar and Adeem Investment for $925 million. The deal was partly financed by several international banks which had agreed to a $393 million loan.
The carmaker has cut 600 jobs since then, culling one-third of its UK workforce, and not even several appearances in James Bond movies and the promise of a Rapide sedan model is enough to revive the overpriced brand.
Investment Dar has now reached a “standstill” agreement with creditors, after it famously defaulted on a $100 million bond payout in April 2009.