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Jefferies Faces $715M Exposure in First Brands Bankruptcy, Stock Slides
Jefferies Faces $715M Exposure in First Brands Bankruptcy, Stock Slides
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BTCCSquare news:
Jefferies Financial Group shares dipped 1.54% in pre-market trading after disclosing $715 million exposure to bankrupt auto parts supplier First Brands Group. The investment bank's specialist invoice-finance fund, Point Bonita Capital, holds receivables from major retailers including Walmart and O'Reilly Auto Parts linked to First Brands products.
The situation escalated on September 15 when First Brands ceased directing retailer payments to Point Bonita. Jefferies maintains communication with the bankrupt company's advisors while assessing potential impacts. Financial Times reports reveal Jefferies previously earned fees for financing arrangements with First Brands, drawing scrutiny from other lenders about deal terms.
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