First Brands Collapses Into Bankruptcy With $10 Billion Debt And $2 Billion Accounting Irregularity Under Investigation

Benzinga

Auto parts maker First Brands filed for Chapter 11 bankruptcy with over $10 billion in liabilities and a $2 billion accounting irregularity under investigation. The company secured $1.1 billion in financing to keep U.S. operations running while global business continues. Its collapse, alongside Tricolor Holdings, has deepened concerns about corporate debt market stress.

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00:00It's Benzinga, bringing Wall Street to Main Street.

00:02First Brands filed for bankruptcy after revealing over $10 billion in liabilities,

00:06according to Reuters. Companies expected to reveal a nearly $2 billion accounting

00:10irregularity under board investigation. The auto parts maker secured $1.1 billion in debtor and

00:15possession financing for First Lean lenders to state operations as it struggles with heavy

00:19debt for past acquisitions. Bankruptcies of First Brands and Tricolor Holdings have unsettled

00:24debt investors and fueled concerns about wider stress in corporate debt markets.

00:28A base company said its Chapter 11 cases apply only to U.S. operations,

00:33with global business expected to continue. The company listed liabilities of $10 billion to $50

00:37billion in assets of $1 billion to $10 billion in its petition.

00:41For all things money, visit Benzinga.com.

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