First Brands’ Loans Drop After Finance Units File Bankruptcy (1)

A bankruptcy filing from a group of companies related to ailing First Brands Group LLC triggered another drop in the value of the auto-parts suppliers’ loans.

First Brands’ term loan due in 2027 fell as much as 11 cents on the dollar to about 32 cents on Thursday before paring some of the losses, according to brokers quotes seen by Bloomberg.

Firms under the Carnaby Capital Holdings umbrella sought court protection on Wednesday in the Southern District of Texas, according to the filing. Patrick James, the owner of First Brands, is listed as president and chief executive officer of various ...