First Brands Mulls Placing Some Units Into Chapter 7 Liquidation

First Brands Group and some of its creditors are weighing a shift of some of its units into the Chapter 7 bankruptcy liquidation process as the company runs low on cash, according to people familiar with the matter.

The move could allow the auto-parts maker to sell some assets and cut down on advisory costs that have burned through its bankruptcy loan, said the people, who asked not to be named discussing private information. The talks are still preliminary and no final decision has been made about the Chapter 7 route.