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First Brands Files for Bankruptcy After Weeks of Lender Scrutiny
First Brands listed liabilities up to $50 billion and secured $1.1 billion in financing to maintain operations amid creditor concerns over debt and financing practices.
- On September 28, First Brands Group Holdings filed for Chapter 11 bankruptcy protection in the U.S. Bankruptcy Court for the Southern District of Texas, listing liabilities between $10 billion and $50 billion and estimated maximum assets of $10 billion.
- Mounting scrutiny came as the company halted refinancing efforts, with creditors worried about opaque off-balance-sheet financing after First Brands paused refinancing in August and investors sought a quality-of-earnings report.
- About 70% of the supplier’s revenues were channelled through factoring, claims tied to supply-chain finance total US$866.5mn across 12 creditors, and some creditors hold large exposures.
- A group of creditors are set to provide $1.1bn in debtor-in-possession financing to First Brands Group Holdings, which says global operations will continue without interruption while international operations are excluded from restructuring.
- A group of supply chain finance providers has more than US$866mn exposure to First Brands Group, which is helmed by Patrick James and supplies Walmart and O’Reilly Auto Parts.
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Auto Parts Maker First Brands Files for Bankruptcy Protection
·New York, United States
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First Brands Group, parent of Carter Fuel, initiates US Chapter 11 bankruptcy
First Brands Group, LLC, a leading global supplier of aftermarket automotive parts, Monday announced that the company has filed voluntary petitions for chapter 11 relief in the United States Bankruptcy Court for the Southern District of Texas to stabilize its…
The US car supplier applied for creditor protection on Sunday evening. Several special purpose companies of the group had already announced their insolvency a few days before.
The US car supplier First Brands has initiated insolvency proceedings, but the global business should continue without interruption.
Coverage Details
Total News Sources19
Leaning Left5Leaning Right2Center2Last UpdatedBias Distribution56% Left
Bias Distribution
- 56% of the sources lean Left
56% Left
L 56%
C 22%
R 22%
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