Latest News Updates From Steven Church

The decision is an early victory for Bank of America in its lawsuit against Aequum. The two lenders each claim collateral rights over car parts built by First Brands.

The 12 brands in the deal include Fram, Autolite and Trico, according to court documents dated March 25. 

Three of the four businesses that First Brands is hoping to sell produce parts for Ford, which along with other carmakers have been keeping some First Brands operations afloat by paying for parts in advance.

First Brands and its main creditors will start mediation sessions to potentially resolve a series of business-crippling disputes that have left the auto parts maker weeks away from a shutdown.

Martin De Luca, a partner in the law firm of Boies Schiller Flexner, has been asked by the U.S. Trustee to put together a report on the allegations of mismanagement and fraud aimed at First Brands.

First Brands warned it will run out of cash without an immediate financing injection, a shortfall that could force the bankrupt auto parts maker to shut down some businesses and sell other operations.

First Brands has admitted it can’t find $2.3 billion related to off-balance sheet financing deals. Lawyers for the U.S. Trustee  asked a judge to move up a hearing on the request to Oct. 29.

Raistone has demanded a court-appointed examiner investigate First Brands, claiming in court papers that as much as $2.3 billion “simply vanished” from the company.

Bankrupt canned fruit company Del Monte Foods won court permission to hold an auction of its assets after giving potential bidders more time to make an offer.

The loan, which is being provided by Deutsche Bank and other senior Marelli lenders, will need to be approved in two stages, which is typical in large corporate bankruptcy cases.