Dec 12 (Reuters) – Auto parts maker First Brands said on Friday it had filed a request for expedited approval to access about $250 million as part of its bankruptcy restructuring.
First Brands said the funds — customer payments for orders it has already fulfilled but cannot access under Chapter 11 rules — have artificially tightened its liquidity and fueled unnecessary concerns about its financial health.
The funds would supplement First Brands’ existing $1.1 billion debtor-in-possession financing, boosting liquidity and supporting reinvestment in the business to drive long-term growth, it said.
First Brands, which makes filters, brakes and lighting systems, had filed for bankruptcy protection in late September.
The auto parts maker’s founder Patrick James stepped down as CEO in October, succeeded by Charles Moore on an interim basis.
The Ohio-based company said all of its distribution and manufacturing centers were operational and were shipping customer orders.
The company said it is actively pursuing several pathways to create value for all stakeholders, including operational, legal and financial initiatives.
(Reporting by Anshuman Tripathy in Bengaluru; Editing by Krishna Chandra Eluri and Alan Barona)
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