parts News Updates

A trustee can complete the bankruptcy “at a fraction of the existing costs,” the U.S. Trustee said in its request to convert First Brands to a Chapter 7 case. 

Funds managed by Black Diamond Capital Management said in an April 29 lawsuit that BDO’s audits did not comply with generally accepted auditing standards.

The Hanwha Group said it will partner with Canadian auto parts firms to make armored vehicles if it wins a contract to build a submarine fleet for Canada.

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

The Decisiv/TMC Parts & Labor Service Benchmark Report found combined parts and labor costs in Q4 declined 1.3% compared with the previous quarter.

Ex-First Brands CFO Stephen Graham pleaded guilty over a fraud that drove the auto parts supply firm into bankruptcy, and he will testify against company founder Patrick James and his brother Edward.

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.

An ex-First Brands executive told a judge in January that he falsified financial statements, inflated invoices and double-pledged collateral for the auto parts supply firm.

Federal prosecutors allege Patrick and Edward James used fake and inflated invoices to persuade lenders to provide billions of dollars in financing to First Brands. Both pleaded not guilty.

Founder Patrick James awaits trial on fraud charges stemming from the multibillion-dollar collapse of his auto parts supply business. He also must deposit $5 million in cash.