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Marathon Asset Management and others that provided First Brands Group with $1.1 billion are seeing the super-senior debt crater at a speed that bankruptcy experts say is unprecedented.

Major First Brands investors have offloaded stakes in the bankrupt auto supplier’s debt, causing the value of its most senior loan to collapse and prompting it to pull forward a lender call.

First Brands' bankruptcy advisers are facing a new challenge that could impact how a potential restructuring of the auto parts supplier is carried out.

Trade finance platform Raistone is looking to sell itself after the collapse of its biggest client, auto parts supplier First Brands Group.

Patrick James' personal bank accounts were frozen last week as part of a lawsuit accusing him of siphoning large sums from the bankrupt auto parts supplier.

First Brands Group won access to $600 million of remaining bankruptcy financing, which company lawyers said was needed to prevent the company from immediately shutting down.

Lawyers for the company — now run by restructuring consultants — alleged that Patrick James borrowed funds on fraudulent terms, only then to “routinely and regularly” divert cash for himself.

The lender group is seeking to have certain special purpose vehicles dismissed from First Brands’ bankruptcy case and have also joined calls for the appointment of an independent examiner.

A Stellantis plant in Michigan will remain shut down for several weeks due to a shortage of key components, a sign of the growing fallout from a supplier’s aluminum factory fire last month.

RealTruck Group told lenders it uses fundamentally different financing tools from those tapped by First Brands Group, another parts maker that collapsed into bankruptcy last month.