First Brands Group Prepares for Possible Bankruptcy Filing - WSJ

Investing.com -- Auto-parts supplier First Brands Group is preparing for a possible bankruptcy filing as lenders raise concerns about its financial disclosures, according to a report from Wall Street Journal, citing people familiar with the matter.

The Rochester, Michigan-based company has seen its loan prices collapse in recent days after attempts to refinance its senior debt failed. Lenders have requested additional information about the company’s earnings and financing arrangements.

First Brands Group, which is privately held, has approximately $6 billion in outstanding debt, including $4.5 billion in first lien term loans that will mature in 2027, according to credit ratings firm S&P Global.

In August, the company halted plans to refinance its debt with investment bank Jefferies after lenders sought more details about its factoring agreements, a type of supply-chain financing used by First Brands.

The company has assembled a team of advisers to help navigate its financial challenges, including investment bank Lazard, turnaround specialist Alvarez & Marsal, and law firm Weil Gotshal & Manges.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.