First Brands Approved to Sell TMD Unit, Split Cash Among Lenders

Bankrupt auto-parts maker First Brands won court approval Wednesday to sell its Toledo Molding and Die business.

• Three groups of lenders will receive a combined $77.3 million of proceeds, according to a court filing last week
• Since filing bankruptcy last year amid allegations of widespread fraud, First Brands has been slowly selling its remaining operating units while company lenders have been fighting over who should get paid first and who has collateral rights over company assets
  • First Brands gave up any effort to reorganize itself as a going concern early this year when lenders, faced with allegations that much of ...