Oaktree, Anchorage Join First Brands DIP Loan Amid Cash Burn

Distressed-debt giants Oaktree Capital Management and Anchorage Capital have amassed positions in the bankruptcy financing for First Brands Group, stepping in as negotiations over a fresh capital injection for the auto parts supplier come down to the wire.

The firms have bought up stakes in First Brands’ $1.1 billion debtor-in-possession loan — a type of borrowing that’s typically first in line to be repaid in bankruptcy — according to people familiar with the matter. Their purchases come as the loan trades at distressed levels.

Anchorage and Oaktree joined the bankruptcy financing as First Brands negotiates an additional loan with ...