- Texas bankruptcy court orders First Brands into liquidation
- First Brands had proposed to seek over US$25bn in claims against third-party financiers
- Court finds plan not in keeping with bankruptcy rules
A US bankruptcy court has ruled that a proposal by First Brands to recover billions of dollars through lawsuits against non-bank lenders is “not feasible”, ordering instead that the company enters liquidation.
First Brands’ court-appointed managers had proposed in June to establish a litigation trust, which would oversee claims and return funds to certain creditors and a group of ad-hoc lenders that provided US$1.1bn in October to fund the company’s operations.
Court documents filed last month argued more…