First Brands Group LLC, owner of aftermarket brands including Raybestos, FRAM, TRICO, and Cardone, has filed for Chapter 11 protection in the U.S. Bankruptcy Court for the Southern District of Texas.

The company said the filing, on September 29, is intended to stabilize operations while pursuing a “value-maximizing transaction.”

A number of related affiliates filed September 24.

First Brands emphasized that international operations remain outside the U.S. restructuring and will continue without disruption.

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“First Brands’ global operations are expected to continue without interruption during the chapter 11 cases, with full continuity for the Company’s international customers, partners, and employees. Importantly, the Company’s international operations are not part of the court-supervised financial restructuring process.”

To support day-to-day continuity, an ad hoc group of creditors has committed $1.1 billion USD in debtor-in-possession (DIP) financing, fully backstopped by group members. The financing is expected to provide liquidity for manufacturing, customer orders, and vendor obligations during the restructuring.

Chief Restructuring Officer Chuck Moore said the filing “marks an important step toward stabilizing First Brands’ operations and securing a long-term future for the company’s world-class portfolio of aftermarket automotive part brands.”

Market skepticism and short positions

Investor confidence had deteriorated well before the filing.

According to the Financial Times, First Brands’ senior loans were trading near 45 cents on the dollar, while junior debt fell as low as 16–21 cents. The FT also reported that Apollo Global Management and Diameter Capital Partners took short positions against First Brands’ debt before the bankruptcy, positions they later exited as the filing approached.

Apollo owns Tenneco and its DRiV business through funds it manages. It also continues to have other automotive sector holdings.

Reuters added that Apollo had used bespoke credit contracts tied to First Brands, underscoring growing concern about the company’s liquidity and accounting practices.

Buyers may emerge from distressed investors

While no formal bids have been announced, analysts cited by the FT said distressed-debt funds could seek to convert their positions into ownership stakes. Apollo and Diameter, already active in the capital structure, are among those expected to watch the process closely.

More information is available at restructuring.ra.kroll.com/firstbrands.