US EditionUS bankruptcy watchdog wants independent probe of First Brands
The U.S. Trustee seeks an examiner amid $2.3 billion missing from First Brands, with $11.6 billion in liabilities raising concerns of fraud and mismanagement.
- In recent weeks, Singapore's sovereign wealth fund GIC asked to pull cash from a Jefferies Financial Group fund with large exposure to First Brands.
- After First Brands Group filed for bankruptcy in late September, Point Bonita had about a quarter of its US$3 billion trade-finance portfolio invested in related receivables.
- Jefferies Financial Group Inc. defended its dealings, saying it wasn't aware of fraud and disclosed US$43 million, or 5.9 per cent, invested with First Brands in an advisory relationship lasting more than a decade.
- GIC asked to pull cash, with redemptions effective on Oct 12 and paid over four quarterly, pro rata payments, last due in October 2026.
- The federal watchdog for corporate bankruptcies joined calls for an independent examiner after First Brands admitted it can't find $2.3 billion, while Lawyers for the U.S. Trustee asked to move a hearing to Oct. 29.
9 Articles
9 Articles
US Seeks Independent Bankruptcy Probe of First Brands Downfall
The federal watchdog for corporate bankruptcies joined a creditor’s demand for an independent investigation of the troubled auto-parts supplier First Brands Group, which has admitted it can’t find $2.3 billion related to off-balance sheet financing deals.
US bankruptcy watchdog wants independent probe of First Brands
The U.S. government's bankruptcy watchdog has asked a judge to appoint an independent examiner to investigate First Brands, saying the auto part maker's creditors needed an impartial account of the company's collapse, which has rattled debt investors in recent weeks.
Stocks fall on fears of rising defaults following First Brands' bankruptcy filing, impacting the credit market. The post US financial market suffers from high-risk credit appeared first on Monitor Mercantil.
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