First Brands seeks access to customer payments held up in bankruptcy

Dec 12 (Reuters) – Auto parts maker First Brands said on Friday it had filed a request ‍for expedited approval to access about $250 million as part of its bankruptcy restructuring.

First Brands said the funds — customer payments for orders it has already fulfilled ‌but cannot access under ‌Chapter 11 rules — have artificially tightened its liquidity and fueled unnecessary concerns about its financial health.

The funds would supplement First Brands’ existing $1.1 billion debtor-in-possession financing, boosting liquidity and supporting reinvestment in ‍the business to drive long-term growth, it said.

First Brands, which makes filters, brakes and ‍lighting systems, had filed for bankruptcy protection in late September.

The auto parts maker’s founder Patrick James stepped down as CEO in O