First Brands Lenders Allege ‘Widespread Fraud’ in Court Filing

A group of First Brands lenders have accused the auto parts supplier of “widespread fraud” and are seeking to end part of the auto parts supplier’s bankruptcy.

Lenders to certain First Brands-related special purpose vehicles said in a Thursday court filing that besides existing allegations that the company double-pledged assets, new information has come to light indicating the business “made misrepresentations in numerous financial statements, credit agreements, and borrowing base certificates.”

The lender group is seeking to have the special purpose vehicles dismissed from First Brands’ bankruptcy case and have also joined calls from other creditors for the appointment of ...