(Bloomberg) — First Brands advisers sought to reassure scarce creditors after the value of its $1.1 billion bailout collapsed, saying things had stabilized since the Chapter 11 filing and the move to unlock funds from debtors it currently cannot access. The firm said in a press release Friday that it is seeking court authorization to access about $250 million either held by First Brands customers or sitting in segregated accounts as part of the bankruptcy process. These funds would supplement the rescue loan that First Brands lenders had already agreed to in order to expand the business. The additional funds relate to customer receipts for orders that First Brands customers have already fulfilled, but which the company said it has so far been unable to access. The issue “artificially impaired First Brands’ true liquidity and cash flows and caused unfounded concerns about the company’s financial position,” the company said. First Brands said it is also looking to restart its factoring of customer receipts and to seek accelerated payment terms “to improve operational delivery.” Those moves come at the same time the auto parts supplier’s new management team has sought to cut costs and improve operations, the company said. Bloomberg News was first to report the company’s plans to raise a new factoring facility. “Together, these actions represent sources of significant value creation and support the company’s long-term strategic and financial goals,” First Brands said. Friday’s statement comes after the value of the bailout loan fell to as low as 30 cents on the dollar earlier in the week. It is rare for the value of a Chapter 11 bailout loan to collapse so suddenly and suggests that creditors are concerned about advisers’ ability to turn the business around. As well as seeking access to new cash, First Brands said on Friday that the vast majority of its key vendors would continue to supply the company with goods and services. Order trends from First Brands customers have also trended upward since the company sought court protection in September and are now near its pre-bankruptcy petition levels, “reflecting continued confidence in First Brands’ product quality and customer service,” the company said. –With assistance from Steven Church. More stories like this are available on bloomberg.com ©2025 Bloomberg LP