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One of First Brands’ largest creditors has alleged that as much as $2.3bn “simply vanished” before the bankrupt auto supplier failed, as it called for an independent examiner to probe its downfall.
The claim from Raistone, a technology group that helped arrange a significant portion of First Brands’ off-balance sheet financing, highlights the scale of the losses lenders fear they could be dealt as part of the collapse.
“Under these circumstances — with up to $2.3bn in assets . . . unaccounted for — the appointment of an examiner to conduct an independent investigation is both mandatory and is critical to maximising recovery for creditors,” Raistone said in its motion in a Texas bankruptcy court.
First Brands declined to comment.
This is a developing story
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