https://twitter.com/SilvioVassalli/status/1976274291399541058
Oops! 👇🏼 https://t.co/jvblybqt9n pic.twitter.com/1i3dLKnzQB
— Kalani o Māui (@MauiBoyMacro) October 9, 2025
“The Debtors estimate that they have between $10 billion and $50 billion in liabilities.” — Chapter 11 Voluntary Petition, Southern District of Texas Bankruptcy Court https://restructuring.ra.kroll.com/firstbrands/Home-Index
“While the official filing lists liabilities between $10 billion and $50 billion, several creditors now fear the actual debt load is closer to the high end — or even beyond — due to extensive off-balance-sheet financing and rehypothecation of receivables.” — John Michael Chambers, October 2025
“By the time it all came crashing down, the company’s sprawling network of auto-parts factories and distribution centers was on the hook for over $10 billion to some of the biggest firms on Wall Street: Jefferies, UBS and Millennium, among others.” — Bloomberg, October 9, 2025
“One of First Brands’ financial partners made an emergency court filing calling for an independent investigation into $2.3 billion tied to the company it said had ‘simply vanished.’”
https://finance.yahoo.com/news/first-brands-collapse-blindsides-wall-143554303.html
“Hot on the heels of the spectacular implosion of subprime auto lender Tricolor (whose name is a not too subtle reference to the Mexican flag, and appropriately so as the company was almost exclusively targeting illegal aliens as its customers, so probably not a shock that it had a very unhappy ending), last month’s mega bankruptcy was that of First Brands, an auto parts supplier with $5.8 billion in outstanding leveraged loan debt, yet it increasingly appears the company had far more liabilities than previously known as a result of what now learn learn, was extensive rehypothecation of said debt, a practice traditionally associated with such unregulated banana republics as China (who can possibly forget the country’s copper rehypothecation scandal a decade ago). Adding to the complexity of this blistering meltdown, which has seen the company’s debt trade from par to the teens in hours…”