Goldman Has ‘Serious Doubts’ First Brands Will Avoid Bankruptcy

Analysts on a Goldman Sachs Group Inc. trading desk have told clients they have “serious doubts” that the auto-parts supplier First Brands Groupwill be able to avoid bankruptcy.

In a note on Wednesday morning, the analysts expressed concern about First Brands’ financing arrangements, some of which carry interest rates north of 30%, according to a copy of the message seen by Bloomberg. The analysts wrote that their research was based on public filings.

The company and its creditors are in talks about different ways to restructure its $6 billion of debt, including a potential Chapter 11 filing. First Brands’ ...