Judge Clears First Brands to Seek Creditor Backing for Litigation-Funded Wind-Down
A U.S. bankruptcy judge in Houston has permitted First Brands, the bankrupt auto parts supplier, to solicit creditor votes on a proposed liquidation plan that includes creating a litigation trust to pursue claims against the company’s indicted founder and other insiders. The judge rejected requests to convert the case to a Chapter 7 liquidation, al…