Aston Martin Owner Said to Cut Debt as Creditors Accept Deal (1)
Investment Dar Co. will reduce borrowings after creditors holding 30 percent of its debt signed up to a new loan deal backed by assets including luxury carmaker Aston Martin. The lenders to the Kuwaiti company agreed to a cash payment totaling 5.7 percent of their debt and a portion of a new Islamic loan equal to about 44 percent. While the new deal represents a writedown of 50 percent it gives creditors more security over the assets. Nine assets will back the new facility, with Investment Dar’s 34 percent stake in Aston Martin the most significant. Creditors not taking the offer retain their claims under the approved restructuring plan. Lenders who have taken the settlement will become 15 percent shareholders in the company holding the assets, while the new $437 million Islamic loan will be repaid through unscheduled asset sales and has a tenor of up to seven years.