The company filed for bankruptcy protection on Monday after disclosing liabilities of more than $10 billion; obtains financing to continue operations
Rochester Hills, Mich.—First Brands Group has announced that the company and certain of its affiliates have filed voluntary petitions for chapter 11 relief to stabilize its business operations.
The company filed for bankruptcy protection on Monday after disclosing liabilities of more than $10 billion.
On Thursday, First Brands Group announced that it had received approvals from the United States Bankruptcy Court for the Southern District of Texas to immediately access $500 million of $1.1 billion in debtor-in-possession (DIP) financing from an ad hoc group of cross-holders, which includes substantially all of the company’s first lien debtholders.
The DIP financing will provide the necessary capital for the company to maintain operations and meet commitments to its customers and supplier partners. Additionally, the First Brands received authorization from the court to, among other things, continue to pay employee wages and benefits without interruption, continue customer programs in the ordinary course, and pay vendors and suppliers in full for goods and services provided on a post-petition basis.
First Brands makes replacement components including filters, brakes and lighting systems for the automotive aftermarket.
Brands include:
• Raybestos complete brake solutions
• Centric Parts replacement brake components
• StopTech performance brakes, Fram filtration products
• Luber-finer filtration products
• Trico wiper blades
• Anco wiper blades
• Michelin-licensed wiper blades
• AirTex and Carter fuel and water pumps
• Autolite spark plugs
• StrongArm lift supports
• Carlson brake hardware
• Cardone new and remanufactured replacement parts
• Towing and trailering portfolio composed of Reese, Drawtite, Bulldog, Tekonsha, Fulton, Westfalia along with Hopkins universal owned and licensed brands
• Philips licensed aftermarket lighting
To support business continuity, an ad hoc group of cross-holders has agreed to provide First Brands with $1.1 billion in debtor-in-possession financing. This financing will provide the necessary capital for the company to maintain operations, fulfill customer orders, and meet its commitments to its vendors and partners from the start of the chapter 11 cases.
First Brands’ global operations are expected to continue without interruption during the chapter 11 cases, with full continuity for the company’s international customers, partners, and employees. The company’s international operations are not part of the court-supervised financial restructuring process.
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