Aston Martin ME sues Aston Martin UK
The top breaking news story for tonight is that UK-based parent company Aston Martin, newly independent from Ford, is being sued for US$50 million by its Dubai-based Middle East distributors because of an apparent breach of contract. The lawsuit, filed by Middle East Aston Martin (MEAM), claims one of the new owners of the carmaker, Kuwaiti investment group DAR, is planning to refinance its stake in the company (whatever that means) and has disallowed the distributor to renew its investment, according to Reuters news agency.
Lawyers representing MEAM state that during the formation of the Middle Eastern distributor back in 2003, all existing financial obligations of Aston Martin in the region were cleared and that several million dollars was invested in the carmaker. MEAM apparently also helped Aston Martin resolve an existing legal dispute with the previous distributor of the luxury cars in the Middle East.
MEAM is upset because it had placed significant investment in Aston Martin for an initial five-year period and was entitled to a renewal option for another five year investment. However, towards the end of the first five-year period, Aston Martin allegedly rejected these renewal rights.
The distributor states in its lawsuit that a settlement of $50 million will cover its investment per the agreement, â€œwhich has been unfairly terminated and also the future revenues that will be lost due to the early termination of the agreement.â€
I guess we won’t be getting that test drive now, which we’ve been trying to get since 2005. MEOW!