First Brand Examiner Loses Bid for More Funds in Fraud Probe

The examiner investigating an alleged global fraud scheme involving collapsed auto parts supplier First Brands lost his request to increase his budget.

Examiner Martin De Luca’s push to bump a previously negotiated $7 million budget to $10 million was rejected in a June 18 order from Judge Christopher M. Lopez of the US Bankruptcy Court for the Southern District of Texas.

A November order said the budget wouldn’t exceed $7 million, Lopez noted.

The ruling keeps the $7 million cap as a final limit on fees and expenses for the examiner and his professionals despite De Luca’s contention that there’s ...