When $11.6 billion vanishes in a matter of weeks, Wall Street sits up and takes notice. That's the fallout from First Brands, the Rochester, Michigan-based auto parts supplier whose bankruptcy has become a cautionary tale of opaque financing, missing payments, and potential fraud.
Lenders, investors, and even major banks suddenly found themselves holding the short end of a massively leveraged bet gone wrong. And it gets worse: Multi-billion-dollar debts, questionable accounting practices, and potentially double-counted receivables have exposed the hidden risks of private credit markets.
