Article
FILING ALERT: First Brands Group’s Third-Party Factor Raistone Files Chapter 7 in the Southern District of New York
Relevant Documents:
Chapter 7 Petition – Raistone Capital
Chapter 7 Petition – Raistone Financial Corp.
Raistone Capital LLC fka Seaport Global Supplier Finance LLC, and parent company Raistone Financial Corp., filed chapter 7 petitions on Feb. 23 in the U.S. Bankruptcy Court for the Southern District of New York. Raistone is one of First Brands Group’s third-party factoring creditors. (First Brands Group filed its own chapter 11 cases in September 2025.)
Raistone asserts First Brands owes it at least $172 million and early into the cases filed a motion to appoint an examiner (along with the U.S. Trustee) to conduct a full accounting into the company’s prepetition factoring and other off-balance-sheet financing arrangements. Martin DeLuca of Boies Schiller Flexner was appointed as the examiner in First Brands in mid-December 2025 to investigate the debtors’ corporate practices, including the company’s financing arrangements.
Whether Raistone can recover against First Brands is unknown, particularly as the bulk of the company’s approximately $2.5 billion third-party factoring liabilities are tied to invoices purportedly sold to the factors that were largely fabricated, inflated or double pledged to multiple lenders. Octus analyzed third-party factors’ exposure under their facilities with First Brands Group, fraud allegations and potential disputes over whether the factors own the First Brands’ receivables, through an examination of the company’s facility with Raistone, that can be found HERE.
In their petitions, Raistone Capital reports $3.7 million in assets and $1.9 million in liabilities (consisting of $5,000 in priority unsecured claims and $1.9 million in nonpriority unsecured claims) and Raistone Financial reports $539,713 in assets and $236,168 in liabilities (consisting solely of nonpriority unsecured debt). Each of the debtors list no secured debt. The company is represented by Riker Danzig in New York. The case has been assigned to Judge David S. Jones. The case numbers are 26-10371 (Raistone Financial Corp.) and 26-10372 (Raistone Capital).
Raistone Capital enters bankruptcy with $2.9 million in accounts receivable, according to its petition.
Raistone Financial’s holders of at least 10% of equity are shown below:
The meeting of creditors is set for March 20 at 10:30 a.m. ET.
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