Automotive Parts Maker First Brands Group Files for Bankruptcy

Auto parts maker First Brands Group, LLC, has filed for bankruptcy protection, reports MassLive.

Upon filing for bankruptcy on Sept. 28, it was revealed the company had over $10 billion in liabilities, as a result of off-balance sheet financing.

Rumors had begun circulating last week that the company’s finances were becoming scarce, and that lenders were becoming hesitant to provide funding without court protection.

In a press release on the situation, First Brands Group said it had $1.1 billion in financing for maintaining operations, fulfilling customer orders, and meeting commitments to vendors and partners from the start of the chapter 11 cases.

“Today’s actions mark an important step toward stabilizing First Brands’ operations and securing a long-term future for the Company’s world-class portfolio of aftermarket automotive part brands,” said Chuck Moore, chief restructuring officer of First Brands, in the press release. “With committed funding from our key financial partners, we remain focused on supporting our employees, working with our valued suppliers, and delivering best-in-class aftermarket automotive technology for our customers globally. We are confident in the strength of First Brands’ industry-leading portfolio and the essential role we play in the automotive supply chain.”