First Brands Secures $1.1 Billion Lifeline Amid Creditor Turmoil
First Brands won final court approval for a contentious $1.1 billion loan after an all-night legal battle with furious creditors. The deal staves off immediate collapse but imposes strict conditions and heightened scrutiny on the embattled company.
More than 80 hedge funds and money managers demanded priority repayment on both new and existing $3.3 billion debt, triggering accusations of greed from opposing creditors. Judge Christopher Lopez ultimately greenlit the financing, acknowledging the alternative WOULD force a value-destroying fire sale.
The Houston courtroom overflowed with nearly 100 legal professionals during Thursday's heated hearing. Weil Gotshal & Manges, leading First Brands' defense, successfully argued the loan represented the only viable path forward despite unsecured creditors' warnings about predatory interest rates.
