First Brands is already winding down North American operations of its Brake Parts, Cardone and Autolite units after failing to secure funding or find buyers for them. (Nick Oxford/Bloomberg)
Key Takeaways:
- First Brands is considering Chapter 7 liquidation for some units as cash shortages intensify.
- Mediation continues over collateral disputes and the impact of fraud allegations on the restructuring.
- Lenders have reduced funding support as debt values fall and liquidation becomes more likely.
First Brands Group and some of its creditors are weighing shifting certain units into…