First Brands Faces New Call for Outside Trustee to Manage SPEs

First Brands Group’s bankruptcy advisers are facing a new challenge that could impact how a potential restructuring of the auto parts supplier is carried-out.

UMB Bank contends First Brands’ new managers are unfairly favoring some lenders over others in an effort to send some of its $1.1 billion rescue financing to a German affiliate facing a cash crunch.

The bank is urging the Texas judge to appoint an independent trustee to manage certain special purpose entities that were used to obtain earlier financing backed by inventory from First Brands affiliate Ultinon, which makes automotive lamps and other accessories.

First ...