Investment Dar, the Kuwaiti firm that owns part of Aston Martin, has reportedly defaulted on payment for a $100 million Islamic bond that was due on April 27. In the process, Bloomberg says it has become the first Persian Gulf company to default on an Islamic bond.
In December of last year, Dar was considering selling a 20- to 30% stake in Aston Martin in order "to profit financially or technically" it said at the time. It was also trying to refinance its short-term debt, attempting to tap banks for 200 to 300 million Kuwati dinars ($691 million-$1 billion U.S.), the upper end of which being more than Dar paid for its share of Aston Martin in the first place.
According to Bloomberg, Dar remains open to selling peripheral assets to shore up its position and it is working with Credit Suisse to restructure. The investment firm has another big Islamic bond maturing in September, and even though the Kuwaiti government is working with national banks to assist them in the downturn, Dar probably doesn't want to be seen setting a pattern of stumbling. Thanks for the tip, Bo!