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Auto parts maker First Brands Group filed for bankruptcy on September 28, 2025, citing massive debt and financial instability.
Auto parts supplier First Brands Group filed for Chapter 11 bankruptcy in Texas on September 28, 2025, citing heavy debt from acquisitions and off-balance-sheet financing, with liabilities estimated between $10 billion and $50 billion and assets up to $10 billion.
The company, which owns brands like Raybestos and FRAM, secured $1.1 billion in debtor-in-possession financing to keep operations running.
Over a dozen affiliated entities also filed, many linked to complex supply chain financing.
Creditors, including Jefferies, Millennium, and several fintech firms, hold significant unsecured claims.
The filing follows declining investor confidence and the collapse of subprime auto lender Tricolor Holdings, raising concerns about financial stability in the auto supply sector.
El fabricante de autopartes First Brands Group se declaró en bancarrota el 28 de septiembre de 2025, citando una deuda masiva e inestabilidad financiera.