Aston Martin's creditors are threatening legal action over the carmaker's plan to sell a portion of its branding and naming rights as part of a contentious £550mn debt-financing deal. A group of existing creditors, owed £1.3bn, sent a “letter before action” warning they may file proceedings to unwind the HPS transaction and block the disposal of intellectual property assets.

The creditors learned that part of the deal involves transferring 50.1 per cent of Aston Martin's non-automotive intellectual property to US brand developer Authentic Brands. This move is linked to a £100mn drawdown from private credit firm HPS, which is an investor in Authentic Brands. Existing creditors argue this breaches terms of their existing debt by placing assets beyond their reach and reducing collateral value, having been denied the opportunity to provide new financing themselves.

Aston Martin has refused to share deal specifics, citing confidentiality. The company defended the HPS financing as “important for the company as a whole.” This follows a separate £50mn sale of branding rights related to its Formula 1 team earlier this year, which involved Lawrence Stroll.