Archive · 13 Dec 2025
First Brands Seeks Funds to Reassure Lenders
First Brands, a company that makes auto parts, is having some money troubles.
They got a big loan to help them, but the value of that loan went down a lot.
Now, they're trying to get access to some money that's stuck with their customers or in special accounts because of their bankruptcy.
They want to use this money to help pay back the loan and make their business stronger.
They're also working to make their operations better and get more orders from customers.
Most of their suppliers are still working with them, and their customers are ordering more, which is a good sign.
The company is hoping these steps will help them get back on track.
First Brands seeks court approval to access $250 million in customer receipts and segregated accounts.
The value of the company's $1.1 billion rescue loan collapsed to 30 cents on the dollar.
First Brands aims to restart factoring of customer receipts and improve operational delivery.
The company reports that ordering trends from customers have trended upwards since filing for Chapter 11.
Most key vendors continue to provide goods and services to First Brands.
- Who
- First Brands and its creditors
- What
- First Brands is seeking court authorization to access $250 million in funds to supplement a rescue loan
- When
- The announcement was made on Friday, following a collapse in the rescue loan's value
- Where
- The company is operating in the United States, with the bankruptcy process ongoing
- Why
- To reassure creditors and improve liquidity and cash flows
- Rescue Loan Value
- Collapsed to 30 cents on the dollar
- Funds Sought
- $250 million
- Fund Source
- Customer receipts and segregated accounts
- Company Action
- Seeking court authorization to access funds
- Current Status
- Business has stabilized since Chapter 11 filing
- Customer Orders
- Trending upwards, near pre-bankruptcy levels
- Vendors
- Majority continuing to provide goods and services