A group of First Brands Group creditors is demanding new, independent advisers for company units that issued nearly $2.5 billion in off-balance-sheet debt, claiming conflicts of interest threaten to disrupt the sprawling insolvency case of auto-parts maker.
Aequum Capital Financial and other lenders owed more than $200 million argue that the same set of lawyers and advisers cannot represent the interest of First Brands while simultaneously overseeing the off-balance sheet units, known as the Special Purpose Vehicle debtors, or SPVs. As the case goes on, First Brands and the SPVs will be fighting over assets and cash because of the ...
