First Brands Group, a global supplier of aftermarket automotive parts in Rochester Hills, today announced that the company and certain of its affiliates have filed voluntary petitions for Chapter 11 relief in the United States Bankruptcy Court for the Southern District of Texas to stabilize its business operations and facilitate a value-maximizing transaction.
To support business continuity, an ad hoc group of cross-holders has agreed to provide First Brands with $1.1 billion in debtor-in-possession financing that will be fully backstopped by certain members of the ad hoc group. This financing will provide the necessary capital for the company to maintain operations, fulfill customer orders, and meet its commitments to its vendors and partners from the start of the Chapter 11 cases.
“Today’s actions mark an important step toward stabilizing First Brands’ operations and securing a long-term future for the company’s world-class portfolio of aftermarket automotive part brands,” says Chuck Moore, chief restructuring officer for First Brands
“With committed funding from our key financial partners, we remain focused on supporting our employees, working with our valued suppliers, and delivering best-in-class aftermarket automotive technology for our customers globally. We are confident in the strength of First Brands’ industry-leading portfolio and the essential role we play in the automotive supply chain.”
First Brands says it expects its global operations to continue without interruption during the Chapter 11 cases, with full continuity for the company’s international customers, partners, and employees. The company’s international operations are not part of the court-supervised financial restructuring process.
Additionally, to ensure a seamless transition into the Chapter 11 process, First Brands has filed a number of customary first day motions. Upon court approval, these motions will enable the company to, among other things, continue payment of employee wages and benefits, honor commitments to customers, and satisfy post-petition obligations to vendors and partners.
These filings follow the voluntary Chapter 11 petitions filed by certain of the company’s non-operational special purpose entities on Sept. 24. First Brands is seeking relief to jointly administer these Chapter 11 cases.
Among First Brands’ brands are Raybestos, Centric Parts, StopTech, FRAM, Luber-finer, TRICO, ANCO, Michelin licensed wiper blades, Carter fuel and water pumps, Autolite spark plugs, StrongArm lift supports, Carlson brake hardware, Philips licensed aftermarket lighting, and CARDONE new and remanufactured replacement parts.
Its towing and trailering portfolio includes REESE, DRAWTITE, BULLDOG, TEKONSHA, FULTON, Westfalia, and Hopkins.
