Lenders of the collapsed auto parts supplier First Brands Group LLC say there isn’t enough liquidity to both fund a bankruptcy plan and increase a court-appointed examiner’s budget to investigate an alleged global fraud scheme.
The lenders accused examiner Martin De Luca of knowingly exceeding the $7 million budget despite First Brands’ limited liquidity, according to a filing Monday in the US Bankruptcy Court for the Southern District of Texas. The examiner knew the budget cap was heavily negotiated and any increase required the lender’s consent, they added.
“Even if the bankruptcy estate had sufficient liquidity (which they do not), ...
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