Iconic Automotive Parts Maker Files for Chapter 11 Bankruptcy to Stabilize Finances

Leading automotive supplier First Brands Group, LLC files for bankruptcy protection with the Southern District of Texas.

riya yadav
Written By riya yadav
News Writer
Deepali Singla News Writer
First Brands Group, LLC files for bankruptcy (Source: Created on Canva)

First Brands Group, LLC has filed for Chapter 11 bankruptcy in the U.S. Bankruptcy Court for the Southern District of Texas. The company’s affiliates also filed for bankruptcy alongside the parent entity and are limited to operations in the U.S.

First Brands Group, LLC Seeks Bankruptcy Protection

First Brands Group is a global manufacturer and distributor of automotive parts, known for its portfolio of leading brands. The company offers high-tech, high-level engineering experience and a customer-focused service through the range of its high-end products.

According to Kroll, First Brands Group, LLC, along with 98 affiliated debtors, filed voluntary Chapter 11 petitions on September 28, 2025, in the United States Bankruptcy Court for the Southern District of Texas. The cases are being jointly administered under case number 25-90399 for procedural purposes. They have been assigned to Judge Christopher M. Lopez.

According to Business Wire, an ad hoc group of creditors will provide $1.1 billion in debtor-in-possession (DIP) financing. This funding will allow First Brands to continue running its business and meet obligations to vendors and partners throughout the bankruptcy proceedings.

Kroll said a hearing on the Debtors’ First Day Motions is set for October 1, 2025, at 9 a.m. The hearing will be accessible only by phone or video conference. Disclosure of the debtors’ assets and liabilities is expected in the upcoming filings. It is expected to shed more light on the company’s financial structure and reorganization plan.

Global Operations Unaffected by Bankruptcy Filings

Global operations of the parent company, First Brands, are expected to continue normally during the Chapter 11 process to ensure uninterrupted services. Its international operations are not part of the court-supervised restructuring.

If approved, the First Day Motions would allow First Brands to keep paying employee wages and benefits, honor customer commitments, and meet obligations to vendors and partners.

The filings follow voluntary Chapter 11 petitions submitted on September 24, 2025, by several non-operational special purpose entities. For First Brands Group, Weil, Gotshal and Manges LLP is serving as legal counsel with Alvarez & Marsal as financial advisor.

Be the First to Know

From new restaurant openings to exciting retail launches and real estate insights, be the first to know what’s happening in News

Share This Article
Riya Yadav is a writer with a background in journalism and literature who brings her thoughtful, story-driven approach to content creation. She has contributed to newspapers, with a focus on feature writing that captures the nuance of people and culture. Passionate about art, books, cinema, and all things creative, Riya combines cultural insight with strong research to bring clarity and depth to her writing.
Leave a Comment

Leave a Reply

Your email address will not be published. Required fields are marked *