First Brands faces cash strain as fraud investigations continue

First Brands has about $190 million in cash and its attorneys say that may only fund operations through the end of January; the company is seeking additional financing and will seek court approval for near-term asset sales while an independent examiner investigates alleged pre-bankruptcy fraud.

First Brands could exhaust its remaining cash by the end of January, its attorneys told a bankruptcy court. The bankrupt auto-parts maker has about $190 million on hand after earlier borrowings and is seeking further financing from its lenders. The company also plans to seek court approval for near-term asset sales to extend its runway. An independent examiner has been appointed to investigate allegations of fraud tied to pre-bankruptcy financing agreements. Key developments: - First Brands reported roughly $190 million in remaining cash and said that amount would sustain operations only through the end of January. - The company is in talks for additional lender financing and will ask the court to approve near-term asset sales to buy time for restructuring. - An independent examiner has been appointed to investigate alleged pre-bankruptcy fraud, including accusations directed at the former CEO, and those allegations are being examined in court. Summary: The firm's limited cash runway may hamper how long it can operate while addressing the alleged fraud and restructuring efforts. The next immediate steps reported are lender negotiations and a court filing to permit rapid asset sales, while the independent examiner continues the investigation.