First Brands Left With Lawsuits as Major Asset After Bankruptcy

After bankrupt auto-parts maker First Brands Group sells its remaining operations and liquidates shuttered factories, its primary assets will be lawsuits designed to collect money for creditors, the company said in court Thursday.

The company, which was allegedly brought down by massive fraud, will put at least $25 million into a trust that will pursue various claims, bankruptcy attorney Sunny Singh told the judge overseeing the insolvency case.

First Brands shuttered 17 facilities and fired 4,000 workers earlier this year after concluding it did not have enough support from lenders to reorganize and emerge from bankruptcy as a going concern. ...