US auto parts manufacturer First Brands Group has initiated a voluntary Chapter 11 bankruptcy process.
The filing, made in the US Bankruptcy Court for the Southern District of Texas, aims to “stabilise” the company’s operations and pave the way for a transaction that maximises value.
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To ensure the continuity of its business, First Brands has secured a commitment from an ad hoc group of cross-holders to provide $1.1bn in debtor-in-possession (DIP) financing.
The financial support, fully guaranteed by certain members of the ad hoc group, is intended to sustain the company’s day-to-day functions, including fulfilling client orders and maintaining commitments to partners and vendors throughout the Chapter 11 proceedings.
The company’s Chapter 11 petition reveals liabilities ranging from $10bn to $50bn, with assets estimated to be in the $1bn to $10bn bracket.
Despite the restructuring, the company’s worldwide operations are expected to proceed uninterrupted.
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By GlobalDataThe company noted that its international operations are not included in the court-supervised financial restructuring.
To facilitate a transition into Chapter 11, the company added that it has filed several standard “First Day Motions.”
Subject to court approval, these motions will allow the auto part maker to maintain employee wages and benefits, uphold customer commitments, and meet post-petition obligations to vendors and partners.
First Brands’ chief restructuring officer Chuck Moore said: “With committed funding from our key financial partners, we remain focused on supporting our employees, working with our valued suppliers, and delivering best-in-class aftermarket automotive technology for our customers globally.
“We are confident in the strength of First Brands’ industry-leading portfolio and the essential role we play in the automotive supply chain.”
The development follows earlier Chapter 11 filings by some of the company’s “non-operational special purpose entities” on 24 September 2025.
First Brands is now seeking court approval to administer these Chapter 11 cases jointly.
Legal counsel for First Brands Group is provided by Weil, Gotshal and Manges, with Lazard acting as investment banker, Alvarez & Marsal as financial advisor, and C Street Advisory Group as strategic communications advisor.
The ad hoc group’s legal counsel is Gibson, Dunn & Crutcher, with Evercore serving as its investment banker.
The First Brands Group portfolio of brands includes Raybestos brake solutions, FRAM filtration products, Centric Parts replacement brake components, and TRICO wiper blades.
