Originally Posted by Racefans
Canadian fashion magnate and boss of Silverstone-based Racing Point F1 Team Lawrence Stroll has taken the first steps towards acquiring a share of Aston Martin Lagonda (AML), the troubled luxury sports car manufacturer. The deal takes the form of an in initial bridging loan worth £55.5m, ultimately to be converted into an equity stake of up to 20%.
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Although various outlets have alluded to a late Thursday board decision between Stroll’s group and automotive conglomerate Geely, RaceFans understands that interest from the Chinese carmaker waned earlier, and an outline agreement was reached with Stroll’s consortium on Wednesday, and Thursday was spent sorting regulatory and legal formalities.
This is borne out by AML’s statement on voting rights issued at noon yesterday, and the formal announcement at 7am Friday via the London Stock Exchange’s website. Given the legalities, such matters are not decided overnight. Indeed, Palmer would not comment on when the deal was eventually struck.
According to various insiders, AML’s situation was precarious. The company faced three choices: accept an injection of capital, draw down on a US loan facility at punitive rates, or face a severe cash-flow crunch which could have seen it unable to meet short-term obligations and potentially plunge into administration, a situation the company has regularly faced in its 113-year history.