In one of the largest and most complex corporate bankruptcy filings in Texas this year, the financial arm of global auto parts seller First Brands Group sought Chapter 11 protection today in the Southern District of Texas, citing between $1 billion and $10 billion in liabilities but only $500 million to $1 billion in assets.
Cleveland-based Carnaby Capital Holdings, 10 of its affiliated businesses and six subsidiaries have hired Weil, Gotshal & Manges partner Clifford Carlson in Houston to be lead or co-lead legal advisor to the debtors.
The case was assigned to Houston Bankruptcy Judge Chrisopher Lopez.
The bankruptcy documents filed Thursday were signed by Carnaby CEO Patrick James, who is also the owner of First Brands.
Bloomberg Law has reported that First Brands, which sells Trico wiper blades and Fram filters, has about $6 billion in debt and has been negotiating to raise more than $1 billion through a debtor-in-possession loan. Bloomberg also reported earlier this week that First Brands is also considering bankruptcy and that Weil Gotshal is also advising the parent company.
The case is Carnaby Capital Holdings, SDTX Case No. 25-90385.