AMERICAS DISTRESS DAILY: First Brands Sues Founder

First Brands has sued founder Patrick James, alleging he diverted over $700 million from the bankrupt auto-parts maker to fund his and his family’s lavish lifestyle.

• The plaintiffs drew on data from more than seven million documents, as well as bank records and a collection of devices from employees.

In Other News:

• Distress is building in the leveraged loan market, driven by financial pain in basic industries like chemicals, with the distressed ratio reaching 5.09%, the highest level since April.
• Office Properties Income Trust, a bankrupt owner of over 120 office buildings, faces a mediation order from US Bankruptcy Judge ...