Skip to content

Blog Post

Octus on Credit: The First Brands story is just beginning

Geoff Burrows, Assistant Editor

Share on X (opens in a new window) Share on Facebook (opens in a new window) Share on LinkedIn (opens in a new window)

The speed and depth of First Brands’ fall is without recent precedent. Octus has been tracking First Brands closely since April, through its paused refinancing attempt over the summer and efforts to reassure lenders and raise capital in August. The situation then fully unraveled:

  • In early September, lenders holding First Brands Group term loans that were trading near par anticipated receipt of a quality of earnings report from Deloitte, intended to facilitate the relaunch of its refinancing effort. 
  • By mid September, Octus reported on advisor hires by both the company and a group of its largest lenders, the signing of NDAs, and fast-changing developments as the company searched for a capital solution–all while prices for its loan crashed to just above 30 cents on the dollar.
  • The culmination came at month-end, when entities related to the company’s inventory finance programs filed for bankruptcy protection, followed in short order by First Brands’ own Chapter 11 filing this past Monday.

With the autoparts manufacturer now in court, we expect more information to emerge on its multiple off-balance-sheet financing programs and how a company with over $800 million in cash at the end June was forced to enter court protection in September with less than $20 million in cash. 

For more coverage on First Brands, including a deep discussion of what comes next, join us for a webinar next Wednesday, October 8 at 10am ET, as we examine what First Brands’ collapse means for the company, the automotive sector, and the leveraged finance market.

This publication has been prepared by Octus, Inc. or one of its affiliates (collectively, "Octus") and is being provided to the recipient in connection with a subscription to one or more Octus products. Recipient’s use of the Octus platform is subject to Octus Terms of Use or the user agreement pursuant to which the recipient has access to the platform (the “Applicable Terms”). The recipient of this publication may not redistribute or republish any portion of the information contained herein other than with Octus express written consent or in accordance with the Applicable Terms. The information in this publication is for general informational purposes only and should not be construed as legal, investment, accounting or other professional advice on any subject matter or as a substitute for such advice. The recipient of this publication must comply with all applicable laws, including laws regarding the purchase and sale of securities. Octus obtains information from a wide variety of sources, which it believes to be reliable, but Octus does not make any representation, warranty, or certification as to the materiality or public availability of the information in this publication or that such information is accurate, complete, comprehensive or fit for a particular purpose. Recipients must make their own decisions about investment strategies or securities mentioned in this publication. Octus and its officers, directors, partners and employees expressly disclaim all liability relating to or arising from actions taken or not taken based on any or all of the information contained in this publication. © 2025 Octus. All rights reserved. Octus(TM) and the Octus logo are trademarks of Octus Intelligence, Inc.