Oaktree, Anchorage Join First Brands DIP Loan Amid Cash Burn
Bottles of Fram motor oil, owned by First Brands Group, at an auto parts store in Oklahoma City, Oklahoma.
Photographer: Nick Oxford/BloombergDistressed-debt giants Oaktree Capital Management and Anchorage Capital have amassed positions in the bankruptcy financing for First Brands Group, stepping in as negotiations over a fresh capital injection for the auto parts supplier come down to the wire.
The firms have bought up stakes in First Brands’ $1.1 billion debtor-in-possession loan — a type of borrowing that’s typically first in line to be repaid in bankruptcy — according to people familiar with the matter. Their purchases come as the loan trades at distressed levels.