• Jan 24th 2009 at 1:06PM
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Aston Martin chairman David Richards has admitted that his company is in danger of a "technical breach of its banking covenants" sometime later this year. The situation could, technically, lead to the banks which financed the acquisition of the British sportscar-maker repossessing it.

Now we're not experts in finance. Not by any stretch of the imagination. So we couldn't tell you specifically what terms of the particular agreement between Aston's owners and its financial underwriters the company is in danger of breaching. But we take some comfort in the use of the contingent term "technical" in connection with the dire term "breach". At this point it would seem that the breach is only a possibility, not an eventuality, and that in such a circumstance the bank would have to be motivated to take control of the company. (We won't tell them if you don't.) But hopefully the Kuwaiti investors propping up Richards will work out a solution before it ever reaches that stage. Otherwise, Aston Martin could end up changing hands yet again.

[Source: The Sunday Times via WCF]

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