First Brands Prepares for Chapter 11 Filing as Soon as Next Week

Troubled auto-part supplier First Brands Group is preparing to file for bankruptcy as soon as next week and is looking to secure a loan of at least $1 billion to keep the business running while it reorganizes, according to people familiar with the negotiations.

The company’s bankers and creditors have been racingto find a way to restructure the company’s $6 billion in debt as investor confidence has deteriorated rapidly over the past two weeks.

Lenders have been discussing a so-called debtor-in-possession loan of about $1.25 billion that would allow the company to continue operating after it makes a Chapter ...