First Brands seeks control of USD 3.8m deferred compensation trust
Company claims ownership of trust funds due to document terms; insolvency notice, Chapter 11 filing cited as reason for trustee to hold funds for creditors

First Brands lender Evolution moves to halt USD 25.7m receivables release amid ongoing collateral dispute
Evolution seeks to pause FBG’s request to release funds pending lien appeal outcome; lender claims release risks dissipating collateral and harming recovery if it wins appeal

Private credit sidesteps LME fights as sponsors quietly cede control of struggling companies
2021-2022 buyout deals drive defaults; aggressive actions in BSL capital structures don't fly in private credit

First Brands wins conditional disclosure statement approval, beats Chapter 7 push as judge calls confirmation ‘last real shot’
Chapter 7 conversion denied despite concerns over feasibility and cash burn; interim CEO testifies on plan feasibility, citing uncertain litigation outcomes

Optimum to show restructuring proposal to creditors’ advisors as company presses for deal before 4Q
Market participants discuss fraudulent conveyance claims amid reorganisation; creditor advisors are already restricted to review diligence documents

First Brands gets signoff for Horizon deals, bringing in tens of millions in proceeds
Horizon North America sale generates USD 64m in proceeds, reducing secured claims; deals aim to address First Brands' USD 9.3bn debt obligations

First Brands factoring provider Leucadia opposes disclosure statement, saying ‘death trap’ could deem creditors ineligible for recoveries

Provision disqualifies creditors from recoveries for objecting to plan, LAM argues

US Trustee moves to dismiss or convert First Brands’ bankruptcy cases, alleges ‘sleight of hand’ to dodge administrative expenses
Company faces USD 9.3bn debt, significant issues from tariffs and capital expenditures; DIP financing includes 30-day deadline for restructuring agreement

First Brands' journey from fraud-led freefall into bankruptcy to mediation-backed plan amidst examiner allegations
Proposed plan for debtor Premier Marketing Group is result of mediation efforts; case has been plagued with fights over adequate protection, discovery, and more

First Brands secured lender Black Diamond sues auditor BDO, accusing it of missing ‘rampant fraud’
BDO accused of ignoring red flags, including cash needs and factoring dependence

First Brands examiner highlights over USD 700m in transfers to former CEO Patrick James, but James says findings are ‘one-sided’
Preliminary findings suggest claims for substantive consolidation, veil piercing; James says in response that transfers were not concealed, appeared in company ledger

First Brands announces RSA, plan forthcoming via mediation deal
Hilco to manage winding down, including inventory sales and receivables collections; plan aims to resolve DIP defaults, allow junior creditor recoveries

First Brands Group examiner delays report as Onset seeks to strike CarVal Mexican law expert report, declaration
Examiner pushes status report deadline to 17 April, eight days past the original deadline; Onset, CarVal dispute reportedly centers on competing claims to about USD 16m held in escrow

Three former First Brands Group executives move to dismiss fraud claims in adversary suit
Three former executives moved to dismiss alleged fraud suit, claim no individualised misconduct; former executives contend conspiracy lacked a viable underlying unlawful act

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

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

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

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

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