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In October 2018, Aston Martin announced that it had sold the Vanquish tools and intellectual property to a mystery shopper for $ 26 million. Aston Martin said the mystery shopper was Detroit Electric and that, in fact, Aston shareholders would not perhaps receive the bulk of that $ 26 million.
Aston Martin has sold the old vine tooling to a mystery shopper for $ 26 million
Aston Martin went public earlier this month and part of the initial public offering process consists of …
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According to Automotive News Europe – and spotted by Motor1 – the company has presented a bad debt provision of £ 19 million. Essentially, they are saying that they no longer expect to receive the money they reported as income when the agreement was signed.
Detroit Electric, whose name clearly states that it is based in Hong Kong, was supposed to receive the plans, equipment and consulting skills needed to turn the vanquish body into a new EV. But by the time the agreement was announced, the company was already late in its payments.
From the story:
With inked contracts, Aston Martin said it expects the money to arrive in increments of 5 million pounds a year. In hindsight, this was not a good sign that the first of these payments was already late when the prospectus was published.
More than a year after signing the contract, Aston Martin acknowledged that she would never recover the bulk of her funds. The disappointing results released last month included a one-time provision of £ 19 million for bad debts.
[…] Attempts to contact Detroit Electric for comment were unsuccessful. The latest available accounts of the UK subsidiary of Detroit Electric show a loss and a net liability for the 2017 financial year, while indicating that the financial support of the companies in the group remained available.
It is unclear whether Detroit Electric has been able to find the money or has chosen not to pay, but given the difficulty Western companies have in attacking Chinese companies, Aston is not going to pay. not waiting to receive more money from the transaction.
It's even more difficult since Aston is one of the last independent car manufacturers. Not only that, but his shares have been hit hard by the company's high debt ratio. To erase $ 20 million of revenue will be useless.
They are looking for a new buyer if, you know, you are in the market.
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