Financing will ensure the company has capital necessary to maintain operations and meet its commitments to customers, employees and partners
Rochester Hills, Mich.—First Brands Group, a global supplier of aftermarket automotive parts, announced on Friday that it has received final approval from the U.S. Bankruptcy Court for the Southern District of Texas to immediately access the entire $1.1 billion in debtor-in-possession (DIP) financing.
Access to the full DIP amount will ensure the company has the capital necessary to maintain operations and meets its commitments to customers, employees and partners.
“Today’s Court approval marks a critical milestone for First Brands,” said Charles Moore, interim Chief Executive Officer of First Brands. “With full access to $1.1 billion of DIP financing and the strong support of our financial partners, we are well-positioned to continue to bolster our inventory pipeline and improve production and fill rates for customers. As we move forward, we remain fully focused on enhancing operational stability and driving a value-maximizing process that positions First Brands’ business units for long-term success.”
Since voluntarily filing for chapter 11 on Sept. 28, First Brands has made progress to improve business performance. Key actions include:
- Appointing a new leadership team, led by Moore, to guide First Brands through the restructuring process.
- Transitioning out substantially all pre-petition executives who led First Brands’ day-to-day operations prior to the chapter 11 filing.
- Advancing the Special Committee’s investigation into the company’s pre-petition practices.
- Implementing new financial controls and stronger governance protocols.
With these approvals, First Brands is moving into the next phase of its chapter 11 process. The company will continue to focus on stabilizing operations, while developing and implementing a long-term business plan.
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