First Brands formally accused of ‘massive fraud’ by lenders
Some creditors want an independent trustee involved in car parts maker’s bankruptcy process
Some creditors want an independent trustee involved in car parts maker’s bankruptcy process

Collapse of automotive parts supplier puts spotlight on arcane practice of working capital finance

Head of trade finance provider says some lenders made out handsomely before car parts company imploded

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

Overnight negotiations between holdout creditors and the car parts company yield a breakthrough over financing terms

Company considers bankruptcy as its finances worsen

Potential violations of securities, bank and wire fraud laws under scrutiny in failure of car parts maker