Although no love lost for Fram and Cardone, a lot of other brands are at risk of disappearing, including Trico, Raybestos and Michelin!
First Brands Group files for Bankruptcy
- Thread starter Mooseman
- Start date
This is going to be a big deal in the fiance world as their financials are opaque (since they are a private company) and they borrowed extensively from private entities. There are lots of questions about how and where the money went. One lender, publicly traded New York investment firm Jefferies, saw its stock drop 17% on this news. Other creditors include Black Rock & UBS, not exactly minor players in the private equity & international banking worlds. There is also speculation that other auto-parts companies may also face troubles.
Billions of Dollars ‘Vanished’: Low-Profile Bankruptcy Rings Alarms on Wall Street
The unraveling of First Brands, a midsize auto-parts maker, is exposing hidden losses at international banks and “private credit” lenders.
Billions of Dollars ‘Vanished’: Low-Profile Bankruptcy Rings Alarms on Wall Street
The unraveling of First Brands, a midsize auto-parts maker, is exposing hidden losses at international banks and “private credit” lenders.
Definitely this will have a huge trickle down effect. OEMs will feel it where they are supplied by them rebranded to their own brand. Like ACDelco brakes are made by Raybestos.
And the billions that just evaporated. Over extended themselves by buying up all these companies and then ??? Now, going bankrupt, wouldn't all this become public, especially if there is an investigation. And this from that NYT article also can have people planning to retire scared:
Hopefully not too many invested their retirement funds into this mess. It would be absolutely devastating if people lost their nest eggs and having to work forever because of this.
And the billions that just evaporated. Over extended themselves by buying up all these companies and then ??? Now, going bankrupt, wouldn't all this become public, especially if there is an investigation. And this from that NYT article also can have people planning to retire scared:
Hopefully not too many invested their retirement funds into this mess. It would be absolutely devastating if people lost their nest eggs and having to work forever because of this.
The mere *prospect* of letting private equity anywhere near 401(k)'s should scare the living bejesus out of literally anyone & everyone.
Well now we know where the money went:
www.gtreview.com
Reader's digest version: Bankrupt auto-parts maker First Brands has sued its founder and former CEO, Patrick James, for allegedly orchestrating a multibillion-dollar fraud that left the company insolvent. The company claims James siphoned hundreds of millions of dollars and fraudulently secured billions in financing using non-existent or doctored invoices and double-pledged collateral.
First Brands accuses founder of receivables and inventory finance fraud
First Brands founder Patrick James obtained finance against non-existent or doctored invoices, as well as inventory that had already been transferred, in order to fund his “lavish lifestyle”, the company’s interim head has alleged. Charles Moore of Alvarez & Marshal, who was appointed interim...
www.gtreview.com
Reader's digest version: Bankrupt auto-parts maker First Brands has sued its founder and former CEO, Patrick James, for allegedly orchestrating a multibillion-dollar fraud that left the company insolvent. The company claims James siphoned hundreds of millions of dollars and fraudulently secured billions in financing using non-existent or doctored invoices and double-pledged collateral.
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flyboy2610
Member
Get a rope.Well now we know where the money went:
First Brands accuses founder of receivables and inventory finance fraud
First Brands founder Patrick James obtained finance against non-existent or doctored invoices, as well as inventory that had already been transferred, in order to fund his “lavish lifestyle”, the company’s interim head has alleged. Charles Moore of Alvarez & Marshal, who was appointed interim...
Reader's digest version: Bankrupt auto-parts maker First Brands has sued its founder and former CEO, Patrick James, for allegedly orchestrating a multibillion-dollar fraud that left the company insolvent. The company claims James siphoned hundreds of millions of dollars and fraudulently secured billions in financing using non-existent or doctored invoices and double-pledged collateral.
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Things aren't looking any better for them...
www.ft.com
First Brands rescue loan tumbles in value as bankruptcy drags on
Debt intended to stabilise the auto parts maker has fallen sharply to trade at about 70 cents on the dollar
www.ft.com
Update: Due to the bankruptcy trouble First Brands is in, the company is winding down some of its operations in the US. Three major brands – Brake Parts Inc (Raybestos), Cardone, and Autolite – are the first casualties. Also, the founder & CEO, Patrick James, and his brother were indicted and arrested on January 29 in Ohio and now face a litany of charges, including fraud and conspiracy.
First Brands Bankruptcy Kills Three Major Auto Parts Companies
First Brands Bankruptcy Kills Three Major Auto Parts Companies
Raybestos and Cardone disappearing will hurt. Even though Cardone was shit parts, they still filled a need. Raybestos are supposedly the supplier for ACDelco brakes. It's unfortunate that people will lose their jobs.
