Judge orders First Brands Chapter 7 liquidation
A U.S. bankruptcy judge rejected First Brands proposal to pay creditors through litigation trusts, converting the auto parts maker's case to a Chapter 7 liquidation. The company faces billions in liabilities after struggling asset sales.
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A United States bankruptcy judge on Monday rejected First Brands' Chapter 11 restructuring plan, converting the insolvent auto parts maker's case into a Chapter 7 liquidation. The ruling wipes out creditor proposals to fund repayments through insider litigation. First Brands collapsed with over $9 billion in liabilities against just $14 million in cash.
