Aston Martin's Parent Having Financial Difficulties?

In terms of product and prestige, Aston Martin is at a high point like never before. Beautiful, elegant vehicles that represent the very best of British luxury are being produced. British luxury at a whole is experiencing a renaissance; Bentley, Rolls-Royce, Land Rover - they are all doing very well. Just when you think things are going smoothly though, turbulence on the financial side comes up.

The problem doesn't seem to be with Aston Martin though - more like difficulties with finances of the parent company. If you remember, back in 2007 Ford was able to sell Aston Martin to a consortium led by Dave Richards, John Singers, Investment Dar and Adeem Investment. Investment Dar led the consortium, and owns 51% (a controlling stake) in the company. At the time it was sold for for $925 million.

Now, Kuwaiti investment fund Investment Dar is trying to secure a $1 billion loan to refinance it's debt, after defaulting on a $100 million Islamic bond in April. Declining gas prices and value of overseas investments are the culprit for the company's declining financial position.

While it tries to get the situation fixed, Dar has signed an agreement with creditors and investors to freeze claims for now. The deal is expected to run until the ned of the year.

I never was comfortable with high-value brands like this being purchased by companies with no experience in the sector. Look at Cerebrus with Chrysler. In terms of the finances though, this probably will get sorted out. Besides, Aston Martin is a great brand with a full-line of new product - I don't think it's going anywhere.