Reported 14 days ago
The US Trustee has joined creditors in demanding an independent investigation into First Brands Group, an auto-parts supplier that is unable to account for $2.3 billion related to off-balance sheet financing. Allegations of fraud and misconduct have led to calls for a swift appointment of a bankruptcy examiner to scrutinize the situation, which will ultimately be reviewed by US Bankruptcy Judge Christopher M. Lopez. The company recently filed for Chapter 11 with over $10 billion in liabilities, raising concerns among Wall Street firms about their exposure.
Source: YAHOO