First Brands Collateral Dispute Sent Back to Bankruptcy Court

A Texas federal judge remanded a $60 million dispute between auto-parts maker First Brands Group and creditor Evolution Credit Partners to bankruptcy court.

The Houston bankruptcy court must resolve several outstanding issues in further proceedings, including whether trade finance partner Evolution has a security interest in $60 million cash collateral and if new facts create a material dispute over whether that interest is adequately protected, Judge Lee H. Rosenthal of the US District Court for the Southern District of Texas wrote in a Jan. 31 opinion.

“The court recognizes that this resolution does not offer either party a final resolution ...