By mid-July, creditors owed over £1.3 billion by Aston Martin watched bond prices fall as the company's finances deteriorated. Their debt was secured on the carmaker's most valuable assets until July 22, when Aston Martin struck a surprise deal with Black Rock-owned private credit firm HPS, borrowing up to £550 million in exchange for pledging its most valuable assets. The assets were removed from existing creditors' reach.

Now Aston Martin and a group including Europe's most aggressive credit hedge funds are hurtling towards high-stakes litigation. Last week members of a creditor group owed £1.3 billion filed for discovery against HPS and other parties, seeking documentation for a foreign proceeding in England. The HPS deal led to the carmaker's bonds sinking further while credit ratings were cut deeper into junk territory.

Creditors, including London-based hedge funds Arini Capital Management and Tresidor Investment Management, have called the HPS transaction a "value-destructive liability management exercise." The two funds this week filed for discovery in New York, seeking information from HPS, Absolute Brands, and advisers Moelis and Lazard. Prior to the HPS agreement, existing creditors had offered the carmaker new financing. The company's readiness to strike the deal with HPS has frustrated bondholders cut out of the deal and spooked employees about long-term prospects.

The UK-listed carmaker is backed by Lawrence Stroll, China's Geely, and Saudi Arabia's Public Investment Fund, but "the fact that Aston Martin has had to turn to HPS for financing indicates that none of its current major shareholders are willing to put in more capital," said Scott Sherwood, an independent analyst. "Aston Martin has once again done just enough to stay alive -- or, in other words, 'to die another day.'" Under the HPS deal, the company borrowed £450 million and has the option to draw down a further £100 million in the future. Authentic Brands, which owns brands ranging from Brooks Brothers to the David Beckham brand rights, also participated in the financing, providing £100 million of the initial £450 million. HPS holds a minority stake in Authentic Brands.

Despite the company's silence, filings on the UK's trademark register have since revealed that Aston Martin's most valuable branding and naming rights have been transferred to a Cayman Islands entity called Silverco -- a new "unrestricted" subsidiary that now secures HPS's lending.