Will Aston Martin survive the credit crunch…
I just found out the “Investment Dar”, the relatively new owners of Aston Martin are in trouble and have defaulted on a few debts.
Anyone else hear anything?

 

not even a question. Brand has value but car prices will get killed. Great car to buy used now

 

The guy at the AM dealer here in ATL said that 90% of their customers pay in cash and that they rarely lease or finance. Does this sound right?

 

My cousin is one of the board of Directors in Inv Dar, they might go bankrupt chap 11 or survive. I hope they dont go bankrupt as I've got a few shares in it my self.

 

Not in LA LA Land.

 

Whatever happens to Dar, there is always going to be someone willing to buy the brand. Aston existed for decades without ever making a profit, now that they are actually in the black I'm sure the brand is more desirable than ever.

 

The problem is due to the Financial crises spreading globally, Aston was purchased mid 2007 and the crises happened when the sub prime mortgage in August. With the Oil prices falling by march, lots of thinks happened. The weighted price index of our bourse went from 15,000 all time high in March with oil at 147.50 to around 7-8,000 now at oil prices in the mid 30's. Financial crises being a global phenomena companies such as Dar cannot repay creditors or business Dar does with its clients are re-scheduled due to tighter or stricter banking rules with the Kuwait central banks regulations and approvals.

The Problem is that Al Dar grew very quickly when oil was at peak and has loans from many that being In'l and few local, it just guaranteed some of its assets. The Price was 1,200 kd a share back in August 07 and its now trading at 76 fils that's a depreciation of the stock by around 94%.

Al Dar has some good assets, that being a large proportion of shares in an Islamic Banking "Boubyan Bank'', the apartments in grovsenor house in london etc.

 

I know someone very very close to the brand. He has no concerns whatsoever. They will be fine. The access they have to significant chunks of private capital is mindblowing. The people behind the ownership of the brand are very very passionate about keeping things headed in the right direction.

 

Ben, is your contact in the US or UK?

 

Pm'd you Josh.