Auto parts giant First Brands collapses into bankruptcy

Automotive parts maker First Brands filed for Chapter 11 bankruptcy protection in September 2025 after a rapid unraveling that caught much of the credit market off guard. The company had spent the summer trying to push through a $6.2 billion refinancing led by Jefferies, but that effort stalled when lenders demanded a closer look at its earnings.

Once that review began, First Brands’ bonds, which had been trading close to face value, collapsed into the 30-cents-on-the-dollar range within days. Its lenders were forced to arrange an emergency $24.5 million bridge loan just to keep the company operating long enough to file for bankruptcy in an orderly way. The case became one of the largest corporate bankruptcies of the year and a widely cited example in a broader wave: US corporate bankruptcy filings hit their highest rate since 2010 over the following months.