Particle.news
Download on the App Store
4 ARTICLES
·
3h ago

First Brands CEO Resigns as Accounting Probe Intensifies, Jefferies Says Its Exposure Is Limited

Jefferies said its direct exposure is about $45 million even though a related fund holds $715 million tied to the bankrupt supplier.

Image
Image
Image

Overview

  • Founder Patrick James stepped down, and chief restructuring officer Charles Moore was named interim CEO.
  • New directors are investigating accounting irregularities linked to complex receivables financing after advisers reported $2.3 billion owed to receivables buyers went unpaid.
  • First Brands has been in Chapter 11 since late September and has approval to draw $500 million of a $1.1 billion debtor-in-possession facility to fund operations.
  • Jefferies disclosed that its Point Bonita fund has about $715 million of exposure, but said the bank’s own hit is roughly $45 million and manageable, with losses at the fund borne by its investors.
  • Court filings highlighted severe liquidity strain, with attorneys citing about $12 million in cash, and the next bankruptcy hearing is set for Oct. 29.