First Brands Advances Business Stabilization Initiatives and Long-Term Paths to Create Value and Drive Growth

Provides Update on Steps Taken to Secure Near-Term Access to Approximately $250 Million of Customer Receipts

ROCHESTER HILLS, Mich.--(BUSINESS WIRE)--First Brands Group, LLC (“First Brands” or the “Company”), a leading global supplier of aftermarket automotive parts, announced today a series of decisive steps the Company has taken to stabilize its operations, strengthen leadership, and maintain continuity of supply and service for customers, including:

• Driving momentum across customer channels, with ordering patterns trending above 90% of pre-petition levels and new business opportunities with over 50 existing and potential customers since October, reflecting continued confidence in First Brands’ product quality and customer service.
• Making substantial progress unlocking its supply chain in recent weeks, with over 95% of First Brands priority vendors working with the Company and continuing to provide goods and services.
• Installing a refreshed management team, including interim Chief Executive Officer, Charles Moore, with deep automotive, industrial, and restructuring experience who have strengthened execution, tightened operational controls, and improved visibility across the business.
• Engaging Craig Barnes, Michael Broderick, and Tim Turvey as senior advisors to accelerate performance improvements and support development of a comprehensive long-term business plan aligned with the Company’s restructuring objectives.

These actions have improved the Company’s operational foundation and positioned it to advance its long-term plan. Further, all of the Company’s distribution and manufacturing centers are operational and shipping customer orders.

Driving Growth and Creating Value Through Multiple Long-Term Paths

As First Brands advances its restructuring, the Company is actively pursuing several meaningful pathways to create value for all stakeholders. These include operational, legal, and financial initiatives.

Key long-term value creation and growth initiatives include:

• Executing significant performance improvement opportunities, including targeted cost reductions, supply chain enhancements, and category-specific profitability initiatives. These efforts, guided by the Company’s management team and supported by industry experts, represent substantial upside once implemented as part of the Company’s long-term business plan.
• Capitalizing on strong industry positioning within the broader aftermarket and select OEM channels, where long-term demand trends remain favorable. These tailwinds, combined with the Company’s scale and recognized brands, support a solid commercial foundation going forward.

Pursuing Factoring Solutions to Bolster Liquidity

First Brands is progressing discussions to restart traditional customer factoring programs in the ordinary course of business. While these efforts are underway, the Company is simultaneously pursuing other factoring alternatives as well as expedited payment terms with its customers to improve operational delivery.

Advancing Plans to Access Approximately $250 Million of Customer Receipts

Today, First Brands filed a request for expedited relief to obtain near-term access to approximately $250 million that is either being held by customers or currently segregated in connection with the chapter 11 process. These funds are related to customer receipts for orders that the Company has already fulfilled but has not been able to access to date, thereby artificially impairing First Brands’ true liquidity and cash flows, and causing unfounded concerns regarding the Company’s financial position.

The release of these funds will supplement the Company’s existing $1.1 billion of debtor-in-possession financing to improve First Brands’ liquidity and support reinvestment in the business to drive long-term growth.

Taken together, these actions represent sources of meaningful value creation and support the Company’s long-term strategic and financial objectives.

Additional information regarding First Brands’ chapter 11 process is available at https://restructuring.ra.kroll.com/firstbrands. Stakeholders with questions may call the Company’s Claims Agent, Kroll, at [phone] or [phone] if calling from outside the U.S. or Canada, or email [e-mail].

Advisors
Weil, Gotshal and Manges LLP is serving as legal counsel, Lazard is serving as investment banker, Alvarez & Marsal is serving as financial advisor, and C Street Advisory Group is serving as strategic communications advisor to First Brands Group. Gibson, Dunn & Crutcher LLP is serving as legal counsel, Evercore is serving as investment banker, and Huron Consulting Group is serving as financial advisor to the Ad Hoc Group.

About First Brands Group
First Brands Group™ is a global automotive parts company that develops, markets and sells premium products through a portfolio of market-leading brands including: Raybestos® complete brake solutions, Centric Parts® replacement brake components, StopTech® performance brakes, FRAM® filtration products, Luber-finer® filtration products, TRICO® wiper blades, ANCO® wiper blades, Michelin® licensed wiper blades, Carter® fuel and water pumps, Autolite® spark plugs, StrongArm® lift supports, Carlson® brake hardware, CARDONE® new and remanufactured replacement parts, and our towing & trailering portfolio composed of REESE®, DRAWTITE®, BULLDOG®, TEKONSHA®, FULTON®, Westfalia® along with Hopkins® universal owned and licensed brands and Philips® licensed aftermarket lighting. The First Brands Group™ portfolio of world-class brands offers best-in-class technology, industry-leading engineering capabilities and superior customer service.