He examines the first trademarks of probe if the bills have pledged several times

Digest opened free editor

Rola Khaleda, FT editor, chooses her favorite stories in this weekly newsletter.

The investigation of financing first Brands Group is studied if the company has pledged to the same bills several times, in reviewing its books and records that have already revealed that debt guarantees may be “hanging”.

First Brands, which rose more than 10 billion dollars collapsed to shook private debt markets and threatens the losses of millions of dollars in Wall Street, and this month appointed the so -called “special committee” to conduct an investigation into the financing arrangements.

This committee, which consists of two independent managers, works with consultants for restructuring at Alvarez & Marsal and Weil Gotshal & Manses to consider a debt sheet by Charles Moore, including the new “new measurement officer” for the new advocacy.

First brands Wide -range benefited from Al -Awla – as companies sell customer bills due to banks or investors for the money provided.

The investigation is investigated “if the city’s receivables have been taken more than once,” according to Moore’s statement, the practice that is sometimes referred to as the dual.

The dues are attributed to the money due under customer bills. The so -called Al -Awla lender provides only money if they believe that they have a single claim about the relevant bill, with the presence of double or multiple customer bills that usually violate these agreements.

The invoice pledge itself more than once can enable companies to collect financing to more than the amount that is already due from the customer.

Although there is no signal from Moore’s statement that the multiple pledge of bills has been identified or confirmed, the probe will add to the questions that were weeks ago about billions of first brands of dollars in financing associated with the bill.

The first brands, which sell auto parts such as the windshield spaces and brake components, collected billions of dollars from the guaranteed debt against the stock that sits in its warehouses with many lenders.

Separately, Moore wrote that advisers to restructuring the first “recent” brands “realized that the inventory supports a debt attachment with a credit fund” may have been collected by securing “separate bank loan guarantees.

The Boston -based Partners Evolution Partit Partners is named Boston as the box whose loan is subject to the “side conflict”, which is also under investigation into the Special Committee.

The investigation of the multiple decline and the discovery of guarantees that are likely to be hanging may raise more concerns among debt investors who have already been shaken by the collapse of the colors of the vertebra.

Before Tricolor, lenders were looking for dual car loans as a guarantee. US Department of Justice It is an investigation of fraud allegations After the lender collapsed.

He I mentioned earlier A lawsuit was filed against the first brand owner, Patrick James, and other companies linked to him by two lenders claiming that fraudulent behavior had exacerbated their losses.

In one case, a bank accused James and other defendants of conducting “distortions and negligence” related to “arrest accounts” – the funds due under customer bills – and “stock”. James strongly denied the allegations of fraud in both cases, who were rejected after reaching the settlements.

James, who was also working as the CEO of the first brands and remained in his board of directors after bankruptcy, was not accused of any violations regarding the investigation of the bill -backed debt debt.

More’s statement also draws a complete picture of the first brands descending to bankruptcy, including revelation that he had only $ 14 million of cash in her bank account at the beginning of last week.

Moore also confirmed a previous FT report that the group’s cash crisis has worsened when one of the first brand banks is She seized a lot of her money.

Southstat in Florida moved last week to secure bank accounts containing 27 million dollars in “Working Capital Funds”-described as “the last remaining liquidity” from the first American subsidiaries-claiming that the failure to pay their debts allowed them “to remove the total amount of money.”

More’s statement is also estimated at the group’s debts, including the so -called “Supply Series Fund” And a budget paper, the debt supported in the stock, at a price of $ 9.3 billion, which is a number higher than previously revealed. This debt number does not include additional amounts suspended by Al -Alala facilities, which are estimated at $ 2.3 billion in the same deposit.

The first brands, Evolution and Southstate immediately did not respond for suspension requests.