US EditionFirst Brands Founder Resigns Amid Accounting Scandal and Billions in Missing Funds
Patrick James resigned after First Brands filed for bankruptcy amid an accounting scandal with over $2 billion missing, triggering lender concerns and restructuring efforts.
- Patrick James, the company's founder and CEO of First Brands, resigned last month, weeks after the bankruptcy filing, with Charles Moore appointed interim CEO and restructuring officer.
- An accounting scandal left lenders scrambling for more than $2 billion, prompting First Brands’ bankruptcy filing on Monday.
- Jefferies told investors Point Bonita was owed $715 million and payments stopped on Sept. 15; Jefferies said its $43 million exposure can be absorbed despite shares of lending firms tumbling last week.
- Earlier this month the U.S. bankruptcy court approved access to $500 million of $1.1 billion debtor-in-possession financing, while Raistone Capital filed an emergency motion ahead of the Oct. 29 hearing.
- Charles Moore is steering restructuring and potential sale preparations, overseeing finances with $500 million DIP access ahead of the Oct. 29 hearing.
19 Articles
19 Articles
First Brands’ C.E.O. Steps Down, While Its Accounting Is Questioned
The embattled chief executive of First Brands, an American auto-parts maker that filed for bankruptcy last month amid an uproar over its lending and accounting, resigned on Monday. Patrick James, a Malaysian-born businessman who founded First Brands more than a decade ago in Ohio, stepped down as the company said it would focus on “stabilizing” its global operations while undergoing bankruptcy proceedings. First Brands named Charles Moore, as it…
Associated Press News
First Brands founder resigns amid accounting scandal and billions in missing funds
The founder and CEO of First Brands is resigning just weeks after the auto parts supplier filed for bankruptcy protection amid an accounting scandal that has left its lenders looking for more than $2 billion in missing funds.
The insolvency of the auto parts producer First Brands will bring movement into the credit insurance market, writes the rating agency Morningstar in a current report. The affected credit insurers are estimated to be exposed with between 300 million dollars (258 million euros) and 600 million dollars. In the worst scenario Morningstar even fears damages in billions. According to the agency, companies have to adjust to higher prices, stricter unde…
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