What Might an Investigation Look Like The First Brands Chapter 11 filing, the questions raised regarding its use of off-balance sheet financing and its new leadership, is setting the stage for an investigation. In this article, the author shares what may ensue at this early stage of the controversy. Introduction Automotive News[1] reported that, on October 13, 2025, First Brands reported its founder, Patrick James, had stepped down as CEO and will be succeeded by Chief Restructuring Officer, Charles Moore, on an interim basis, as the auto parts maker advances its Chapter 11 bankruptcy process. On the same day, the…
-
-
How Exactly Did $2.3 Billion Vanish? First Brands Group Holdings has filed for Chapter 11 bankruptcy, capping weeks of turmoil sparked by creditor concern over the auto-supplier’s use of opaque off-balance sheet financing. The U.S. Department of Justice has launched an investigation into the circumstances leading to this company’s collapse. In late September 2025, U.S. auto parts maker, First Brands, filed for bankruptcy relief. A key issue that is under investigation is a $2 billion factoring arrangement. The U.S. Department of Justice has launched an investigation into the circumstances leading to this company’s collapse. This article raises several initial questions…