First Brands secures final mediation extension to advance case resolution talks, judge warns against further delays
Judge approves extension of FBG case resolution mediation with Judge Isgur through 27 March; likely the final extension for case resolution talks

European CLO default rate remained stable in 2025 — Fitch
The annual default rate remained largely stable for EMEA CLO portfolios in 2025, while defaults decreased among issuers rated CC or below, according to new data from Fitch 

First Brands seeks expedited sale of Walbro business for USD 50m to Overdrive Capital
USD 50m cash purchase price plus assumed liabilities, Polaris Industries as guarantor; expedited approval needed due to funding constraints and potential job losses

Raistone enters Chapter 7 to liquidate following major customer First Brands’ collapse into Chapter 11
Raistone provided factoring services to First Brands, its largest revenue source; First Brands faces fraud allegations, with Raistone having significant unsecured credit exposure

First Brands adequate protection fight with Evolution yields appellate court ruling friendly to allegedly secured lenders – Legal Analysis
District Court remands dispute back to Bankruptcy Court for further findings and corrected analysis; District Court sets precedent for Chapter 11 cases in Southern District of Texas that prima facie showing of security interest entitles creditors to adequate protection

First Brands Group extends mediation period through 27 February
Multiple complaints filed, alleging duplicate factoring and insider transactions; examiner investigates factoring activity and related transfers

New filings detail Patrick Drahi's diversion of assets to detriment of certain Altice creditors – report
EUR 4.5bn loan affected, 55% of Altice International's assets; creditors explore litigation, including covenant breach and conveyance claims

First Brands CEO Patrick James indicted on charges of defrauding lenders
James is accused of multiple fraudulent schemes, with brother Edward James also indicted; they are facing charges on bank and wire fraud

Saks gets 10-member unsecured creditors committee, including Chanel and Amazon.com
Chanel leads UCC with USD 136m claim, followed by Kering; Amazon.com joins UCC after opposing interim DIP financing

First Brands seeks to extend plan exclusivity to 22 April in 'massive, complicated' bankruptcy
Complexity cited, with 112 debtor entities and over 100 non-debtor subsidiaries; USD 1.1bn in new money DIP financing secured, with stabilisation efforts ongoing

Investors scrutinise ABF managers' collateral diligence standards
Investors are keeping a close eye on how private credit managers lending against collateral are conducting diligence on those underlying assets, following prominent bankruptcies that have spotlighted the risk of lending against assets

Private credit is too small to create a global financial crisis — but there are plenty of other storm clouds gathering
Total bankruptcy filings have climbed every quarter since June 2022

Monthly defaults driven by bankruptcies for first time in two years – S&P Global
Five of the eight defaults recorded in September resulted from bankruptcy filings, with three coming from the US, according to a new research report

US Trustee seeks examiner in First Brands bankruptcy, citing USD 2.3bn of missing funds and ‘malfeasance’
The US Trustee has called First Brands' internal investigation insufficient due to the scope of the allegations, while factoring provider Raistone is also seeking an examiner, citing the need for an impartial investigation

This has been a year of avoiding the losers – Bain
Gauthier Reymondier, head of Bain Capital Credit Europe, says avoiding losing companies has become more important than choosing winners

Smaller issuers default at more than twice the rate of their mid-sized peers – Fitch
Issuers with EBITDA below USD 25m saw a 9.3% default rate in the 12 months to the end of 2Q25

First Brands factoring agreements a USD 2bn variable at play in potential Chapter 11 filing – legal analysis
Factoring agreement terms determine ownership of accounts receivables in bankruptcy; fraudulent transfer claims, termination fees possible issues

First Brands plans free fall bankruptcy with DIP, as Deloitte goes pencils down
Chapter 11 is expected as soon as Sunday; ad-hoc cross-holder lender group offers around USD 1.1bn DIP financing

Rush to exit bankruptcy pushes more companies to file a second time
Four companies file for second time in 2025, up from one last year; Poor prognosis for Chapter 22 filers, with high liquidation rates  

Corporate default rates predicted to fall despite tariff uncertainty - S&P
Speculative-grade corporate default rates expected to fall on both sides of the Atlantic as trade tension uncertainty eases, but some concerns remain

Default expectations rise as tariff threats to North America deepen – IACPM survey
Credit portfolio managers across the world see tariff-related headwinds for both the US and Canada

Tariff pressures stir PIK fears in private credit
As the US economy flashes warning signs amid President Trump’s push for higher tariffs, any pain in the direct lending market will likely appear in the increased use of payment-in-kind interest, market participants say

Leveraged loan, HY defaults to pick up as tariff pause adds more uncertainty - Goldman
The bank expects macro challenges to continue despite the tariff pause  

Large cap deals generating higher percentage of private credit defaults, S&P says
Larger private debt deals were also more likely to include a payment-in-kind feature

Middle market private credit default climb significantly to 4.7% – Proskauer
The US direct lending market saw a big increase in middle market defaults in the fourth quarter of 2024