First Brands-Linked Financing Units File for Bankruptcy

Companies that helped auto-parts maker First Brands get money have gone bankrupt.

These companies, called Carnaby Capital Holdings, owe between $1 billion and $10 billion.

The owner of First Brands is also the boss of the Carnaby units.

This bankruptcy could make things worse for First Brands, which is considering its own bankruptcy after having trouble getting a loan.

They have been using a financing method that lets them get cash quickly.

A report from Moody’s said revenues increased after they acquired some companies using debt.