14+ hour, 4+ min ago (363+ words) First Brands Group's bankruptcy advisers are facing a new challenge that could impact how a potential restructuring of the auto parts supplier is carried out." UMB Bank contends First Brands' new managers are unfairly favoring some lenders over others in an effort to send some of its $1.1 billion"rescue financing"to a German affiliate facing a cash crunch." The bank is urging the Texas judge to appoint an independent trustee to manage certain special purpose entities that were used to obtain earlier financing backed by inventory from First Brands affiliate Ultinon, which makes automotive lamps and other accessories." First Brands' advisers have "an unavoidable conflict of interest" in their competing responsibilities between company creditors and lenders that extended financing to the SPEs, the bank said. A neutral, outside Chapter 11 trustee, will "address issues from an unbiased perspective," it said." Creditors…...

6+ day, 23+ hour ago (430+ words) Trade finance platform Raistone is looking to sell itself after the collapse of its biggest client, auto parts supplier First Brands Group. Raistone said it is "evaluating strategic alternatives" due to the "liquidity strain" it has faced since the demise of First Brands, according to an investor presentation reviewed by Bloomberg." Potential bidders were asked to indicate their interest in an outright sale or an equity recapitalization by Oct. 31. It is unclear what has happened since that deadline. Raistone did not immediately respond to a request for comment." Raistone operates a platform that connects manufacturing firms like First Brands with investors willing to provide short-term cash in exchange for revenue that is scheduled to come in. The company said in its presentation that it is a "low-risk platform business" that offers accurate data to create a "reduced chance of fraud....

1+ week, 4+ day ago (427+ words) A group of First Brands Group creditors is demanding new, independent advisers for company units that issued nearly $2.5 billion in off-balance-sheet debt, claiming conflicts of interest threaten to disrupt the sprawling insolvency case of the auto parts maker. The founder and former CEO of the company allegedly used fake invoices and double-pledged assets to fraudulently convince investors to lend the company billions of dollars, according to court documents. The fraud allegations, along with incomplete and confusing financial records, increase the chances that different sets of creditors will wind up fighting over the same set of assets. First Brands filed bankruptcy in September with just $14 million in cash in the bank, even though the company had about $5 billion in revenue in 2024. Since coming under court protection, company advisers have been trying to untangle the firm's financial woes as they search for…...

2+ week, 3+ day ago (646+ words) First Brands Group lawyers said the auto parts company needs access to its roughly $600 million of remaining bankruptcy financing or it will have to shut down immediately. That request, made during a Nov. 6 court hearing in Houston, represents the rest of the $1.1 billion financing being'offered'by a group of First Brands lenders. U.S. Bankruptcy Judge Christopher Lopez last month authorized the company to make an initial $500 million draw on the loan, and a hearing to consider the current request will continue Nov. 7.' "We are talking high stakes, as high as they get," company attorney'Sunny Singh'said during the hearing. If the judge sides with holdout creditors and rejects the financing package, Singh said "it's game over" and the firm will liquidate. First Brands has struggled to overcome objections from creditors who accuse the firm of stripping them of their collateral rights in inventory…...

2+ week, 6+ day ago (543+ words) First Brands Group sued founder Patrick James for allegedly misappropriating hundreds of millions of dollars from the U.S. automotive supplier which collapsed into bankruptcy in September. James "secretly pilfered some of the company's assets to fund his and his family's lavish lifestyle. In short, he lined his pockets at the expense of First Brands and its creditors," according to the document. The plaintiffs drew on data from more than 7 million documents, as well as bank records and a collection of devices from employees. In the 35-page document, lawyers paint a picture of James' luxuriant spending habits, pointing to a fleet of at least 17 "exotic cars" and a celebrity personal trainer. In some cases, payments to James and his family were made directly from First Brands accounts, including at least $3 million in rent paid over 2019 to 2024 for a New York townhouse and…...

3+ week, 3+ day ago (325+ words) A group of First Brands lenders have accused the auto parts supplier of "widespread fraud" and are seeking to end part of the auto parts supplier's bankruptcy. Lenders to certain First Brands-related special purpose vehicles'said'in an Oct. 30 court filing that besides existing allegations that the company double-pledged assets, new information has come to light indicating the business "made misrepresentations in numerous financial statements, credit agreements, and borrowing base certificates." The lender group is seeking to have the special purpose vehicles dismissed from First Brands' bankruptcy case and have also joined calls from other creditors for the appointment of an independent examiner following claims that billions of dollars had'vanished'from the company. Although the special purpose vehicles were supposed to always have cash in their bank accounts, First Brands informed lenders shortly before the bankruptcy filing "that those bank accounts had no…...