First brands-linked financing units file for bankruptcy

(Bloomberg)-A group of companies used by Ailo-Part Manufacturer First Brands Group LLC to collect financing has applied for the protection of bankruptcy in Chapter 11. Firms under the Carnaby Capital Holdings Sambrel on Wednesday in the Southern District of Texas Court Protection, with a list of between $ 1 billion, filing. Patrick James, the owner of First Brands, is listed as president and CEO of various Carnaby units, and his signature appears in the bankruptcy document. Carnaby is based in Cleveland and is represented by Weil, Gotshal and Manges, the same law firm that advises first brands. A first brand representative refused to comment. The development could increase the pressure on first brands, which considered to submit bankruptcy to raise a rescue loan after stopping a $ 6 billion refinancing in August. Credit investors have asked for a quality earnings report, which involves a third party reviewing the accounts. First Brands has used extensive use of financing for outdoor balance states, enabling companies to cash in early on their debtors or pay suppliers with a lender. Revenue has risen to a number of acquisitions funded by debt, according to a Moody’s report on Monday. Some Carnaby units have been named as a vehicle to raise financing in reports submitted to the Securities and Exchange Commission by Carval Credit Menection, one of the first brands’ borrowers. The ultimate owner of Carnaby Capital Holdings is Viceroy Private Capital LLC, according to the filing of the bankruptcy. Carval Credit Opportunities and Weil, Gotshal and Manges, the law firm, did not immediately respond to requests for comment. More stories like these are available on Bloomberg.com © 2025 Bloomberg LP