First Brands’ Bankruptcy Debt Sinks to ~30 cents as Pressure Builds

December 12, 2025 — First Brands Group’s super-senior bankruptcy rescue loan has plunged again, with trading reported as low as ~30 cents on the dollar this week.

The move marks a dramatic reversal for debt that initially traded near par after First Brands entered Chapter 11 in late September with a $1.1 billion debtor-in-possession (DIP) facility meant to keep operations running.

What’s troubling lenders now

Recent coverage has tied the slide to a mix of liquidity fears and unresolved questions about records and collateral.

• New “money on top” risk: Lenders and advisers have been weighing whether First Brands needs additional senior funding, a scenario that can reorder priorities and increase volatility in prices.
• Invoice and accounting concerns: The Wall Street Journal reported that advisers uncovered extensive irregularities involving invoices, including missing or altered records and invoices allegedly sold multiple times, adding to uncertainty around the company’s financial picture.
• Escalating court scrutiny: A U.S. bankruptcy judge ordered an independent investigation into fraud allegations tied to third-party invoice financing, according to Reuters.

There are also signs of stress showing up in the business itself. Bloomberg reported that confusion over who should be paid has disrupted customer payments, a symptom of how tangled the financing structure has become in court.

Distressed funds circle as the creditor roster shifts

While some early lenders have moved on, others are leaning in. The Wall Street Journal reported that distressed investors have been buying into higher-ranking debt positions to gain influence over the restructuring path.

Why suppliers are paying attention

For vendors, a buyer’s debt trading at deep discounts is not a direct forecast of what trade claims will recover. But it often lines up with real-world friction, like slower approvals, tighter remittance controls, and a sharper spotlight on receivables processes while the court sorts out priorities.