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First Brands Group, LLC, a global supplier of automotive aftermarket parts, announced it has received approvals from the United States Bankruptcy Court for the Southern District of Texas for its “First Day” motions concerning the chapter 11 cases for its U.S. operations. This approval allows the company to move forward with its financial restructuring while maintaining business continuity.
Key Highlights
- Received court approval to immediately access $500 million in new financing.
- The financing is part of a larger $1.1 billion debtor-in-possession package.
- Chapter 11 cases pertain only to the company’s U.S. operations.
- International operations and certain business units remain unaffected and continue as usual.
Financing and Business Continuity
The Court granted First Brands approval to immediately access $500 million of a $1.1 billion debtor-in-possession (“DIP”) financing package. This financing is provided by an ad hoc group of cross-holders, which includes the majority of the company’s first lien debtholders.
This capital infusion is intended to ensure the company can maintain operations and meet its commitments to customers and supplier partners. The Court also granted authorization for First Brands to continue paying employee wages and benefits without interruption, maintain customer programs in the ordinary course, and pay vendors and suppliers in full for goods and services provided on a post-petition basis.
Related: Deeper Dive on First Brands Bankruptcy
“This additional financing will enable First Brands to stabilize operations, improve fulfillment of customer orders, and meet our commitments to supplier partners going forward,” stated Chuck Moore, Chief Restructuring Officer of First Brands. He added, “We are grateful to our financial partners for their support, and remain laser-focused on delivering for our customers at the highest levels throughout this process.”
Scope of Restructuring
The chapter 11 cases are confined to the company’s U.S. operations. First Brands’ international operations, as well as its Novares North America and Ultinon Motion businesses, are not part of the financial restructuring process and continue to operate normally.
Additional Information
Further information regarding the company’s chapter 11 process is available at https://restructuring.ra.kroll.com/firstbrands. Stakeholders with questions can contact the company’s Claims Agent, Kroll, at (877) 631-1151 for domestic callers or +1 (646) 290-7146 for international callers. Inquiries can also be emailed to [email protected].
Advisors
First Brands is being advised by Weil, Gotshal & Manges LLP as legal counsel, Lazard as investment banker, Alvarez & Marsal as financial advisor, and C Street Advisory Group as strategic communications advisor.
About First Brands Group
First Brands Group™ is a global automotive parts company that develops, markets, and sells products through a portfolio of leading brands. These brands include Raybestos®, Centric Parts®, StopTech®, FRAM®, Luber-finer®, TRICO®, ANCO®, Michelin® licensed wiper blades, Carter®, Autolite®, StrongArm®, Carlson®, CARDONE®, and a towing and trailering portfolio composed of REESE®, DRAWTITE®, BULLDOG®, TEKONSHA®, FULTON®, and Westfalia®, alongside other brands.
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