The US Company First Brands Group filed a request for bankruptcy protection, revealing more than 10 billion dollars in total obligations, which marks one of the most spectacular collapses in the private debt markets in the last few years.
Auto parts based in Ohio has applied to Chapter 11 in the southern district of Texas late Sunday, formalizing a sudden disintegration borrowing billions in private markets and caused concerns about the more risky lending on the Wall Street.
In its bankruptcy, First Brands, owned by the Malaysian Entrepreneur Patrick James, did not reveal specific obligations, but assessed that they were in the category between 10 and 50 billion USD, while their assets estimated at 1 to 10 billion USD.
First Brands told the trustees beforehand 5.9 billion in the long-term debt, compared to nearly $ 1 billion, but many feared that there are billions of dollars more.
A special committee to be established as part of bankruptcy will lead to an investigation into suspicious financial arrangements, which have introduced this company into enormous debts.
