First Brands Wins Second Chance to Pursue Liquidation Plan (1)

Bankrupt auto-parts maker First Brands can make a second attempt to win court approval for a creditor vote of a proposal to raise money through lawsuits against the company’s former top officers and lenders, a judge said Monday.

US Bankruptcy Judge Christopher Lopezscheduled a June 12 hearing on the request. The same day, he is set to hear arguments over whether the company’s expensive lawyers and financial advisers should be replaced by a court-appointed Chapter 7 trustee.

If Lopez converts the case to Chapter 7, First Brands’ proposed payout plan would likely be abandoned and advisers including Weil, Gotshal ...