Apollo builds bet against debt of under-fire auto parts supplier
Ohio-based First Brands Group has come under scrutiny for its invoice factoring
Ohio-based First Brands Group has come under scrutiny for its invoice factoring

Company considers bankruptcy as its finances worsen

Loans trade at distressed levels after ‘chaotic’ selling as investors brace for tricky restructuring

Bank denies earning undisclosed fees on financing provided to auto parts supplier through ‘side letter’

The company is relying on a $48mn infusion from automakers to continue operating

Debt intended to stabilise the auto parts maker has fallen sharply to trade at about 70 cents on the dollar

Car parts maker’s rapid downfall has raised concerns of widespread losses on Wall Street