First Brands Judge Approves Examiner to Probe Fraud Allegations

The federal judge overseeing the insolvency case of First Brands Group said he would ask the US Trustee to appoint an examiner to look into allegations of fraud and misconduct at the troubled auto-parts maker.

• The examiner will have a budget of $7 million, paid for by First Brands, under the order to be signed by US Bankruptcy Judge Christopher Lopez in Houston
• Once appointed, the examiner must consult with First Brands and creditors on a detailed work plan for the probe
• Creditors and the US Trustee, which is an arm of the US Justice Department that monitors corporate bankruptcy ...