Major investors in First Brands Group have offloaded stakes in the bankrupt auto supplier’s debt in recent days, causing the value of its most senior loan to collapse and prompting it to pull forward a lender call to calm nerves.
Marathon Asset Management and Redwood Capital Management are among funds who have sold chunks of the super-senior loan they provided First Brands as it crashed into a Chapter 11 restructuring, according to people familiar with the matter.
Diameter Capital Partners, Monarch Alternative Capital and UBS Asset Management have sought to sell portions of their debt stakes but it’s unclear ...
