In 1986 Brian Angliss' Autokraft bought 49% of AC Cars (Autokraft was building Cobra replicas since 1982), the remaining 51% went (through someone whose name I don't remember) to Ford. The above proposal was Ford's new Ace from 1986, based on Scorpio with 4wd and a Ford V6.
Angliss didn't like the direction Ford was pushing in and he commissioned IAD to completely redesign this Ace. Ford finally sold their stakes in 1992 and the new Ace (known as the Brooklands Ace) went into production in 1994.
As for the name problms, it was about Cobra in particular, not AC. Carroll Shelby moaned a lot about AC using the Cobra name on his cars and persuaded Ford into filing a lawsuit against the next owner, Alan Lubinsky. AC lost and since around 2001 (I'm not sure, I may be off a few years here) the cars have been known simply as AC MkV and such.