Aston Martin Lagonda Global Holdings (AMGDF), the British luxury carmaker, is facing growing pressure from its debt investors as an ad hoc group of senior secured bondholders signed a cooperation agreement amid rising concerns over the company's losses. The group, which is working with Akin Gump Strauss Hauer & Feld, holds more than 50% of the notes, according to a spokesperson, and is inviting other noteholders to join the pact. Investors may view the move as a sign that creditors are seeking a more coordinated position as Aston Martin continues to navigate a difficult profitability reset.
The pressure comes after Aston Martin was rescued in 2020 by investors led by Canadian billionaire Lawrence Stroll, with fresh capital injected into the business several times since then. The company has also counted Geely founder Li Shufu, Saudi Arabia's Public Investment Fund, and Mercedes-Benz, the German automaker, among its shareholders, but the turnaround has been complicated by product delays, quality issues, weaker demand in China, and U.S. tariffs. First-quarter revenue rose 16% as deliveries of higher-end models improved, but Aston Martin still reported a 65.5 million pretax loss while net debt increased to 1.46 billion, a mix that could keep investor attention focused on liquidity, financing options, and balance-sheet risk.
Chief Executive Officer Adrian Hallmark has been trying to contain losses by reducing spending, including job cuts and a review of new models, while the company has also pursued alternative financing through a deal with Stroll's Formula One team for future Aston Martin naming rights. Aston Martin's $1.05 billion of secured notes due in 2029 traded at about 72 cents on the dollar on Wednesday, down roughly 4 cents on the day and below about 95 cents at the start of the year, according to Trace pricing data. The company also has a 595 million senior secured sterling bond due in 2029, while Fitch Ratings downgraded its credit score in May and said it expects Aston Martin will need significant cash injections over the next four years to cover shortfalls.