(Bloomberg) analysts on a Goldman Sachs Group Inc. trading desk told clients they had “serious doubt” that Auto-Parts Provider First Brands Group would be able to avoid bankruptcy. In a note Wednesday morning, the analysts expressed concern about the financing arrangements of the first brands, some of which carry interest rates north of 30%, according to a copy of the message Bloomberg saw. The analysts wrote that their research is based on public filing. The company and its creditors talk about different ways to restructure its $ 6 billion debt, including a possible submission of Chapter 11. The loans of the first brands have been in the midst of growing concerns over the past few weeks, known as Factoring that uses businesses to sell their future income for immediate cash. “While we are all trying to sift through how it will play out at its core, it is the nature of all the different factors and any unusual financing arrangements they have,” the bank wrote in the note. “Our analysts have found some interesting things that occur outside the balance sheet but are difficult to reconcile.” The analysts, who work outside the bank’s research department, argue that most of the challenges that lie ahead are already priced in the broad -syndicated debt of the first brands. The desk quoted between 44.5 and 46.5 cents on the dollar of the first brands on Wednesday. A Goldman Sachs representative declined to comment. First brands did not respond to requests for comment. Creditors to first brands, which make windscreen wipers, water pumps and filters, are currently hampering losses in the billions of dollars. The biggest outstanding questions for investors, Goldman said, is approximately the size of a possible financing in the possession of debtors, who may take precedence over existing creditors, the company’s total profitability after the balance of balance is involuntary, and the amount of fairness in the reorganized company that will be left for creditors as the bankruptcy. -With help from Laura Benitez. More stories like these are available on Bloomberg.com © 2025 Bloomberg LP
Goldman has ‘serious doubt’ first brands will avoid bankruptcy
