First Brands Group starts voluntary U.S. Chapter 11

First Brands Group starts voluntary U.S. Chapter 11

September 12, 2025 - First Brands Group LLC, a prominent auto-parts supplier, has filed for Chapter 11 bankruptcy protection in the U.S. Bankruptcy Court for the Southern District of Texas. The company, which supplies parts like windshield wipers, water pumps, and filters, is seeking to restructure its $6 billion debt load .

The filing was initiated by Carnaby Capital Holdings, LLC and its debtor affiliates, which are special-purpose financing vehicles linked to First Brands Group. Carnaby Capital Holdings reported assets ranging from $500 million to $1 billion and liabilities from $1 billion to $10 billion. The case number is 25-90385 .

The Chapter 11 filing indicates that there will be funds available for distribution to unsecured creditors. The company is represented by Clifford W. Carlson of Weil, Gotshal & Manges LLP . The filing is unusual because it comes without a restructuring support agreement with lenders in place, suggesting a rushed process .

First Brands Group has been facing financial strain due to its reliance on a financing method known as factoring, which converts promised revenues into immediate cash. The company had been attempting to refinance its debt this summer, but concerns about off-balance sheet financing and debt-funded acquisitions led to a pause in these efforts .

Creditors have been discussing a debtor-in-possession (DIP) loan of around $1.25 billion, with a portion of existing debt being rolled up into an additional component of the DIP. This loan would put certain lenders ahead for repayment and includes a backstop fee for negotiating lenders .

The company is expected to file for Chapter 11 as soon as next week. The rushed process means that creditors face significant uncertainty about how much they will recover from First Brands Group .