The parent company of Champion Labs in Albion, Airtex, and several other well-known automotive parts manufacturers has filed for Chapter 11 bankruptcy protection. Carnaby/Capital Holdings, LLC, also known as First Brands in various filings, submitted its bankruptcy petition last Thursday in the Southern District of Texas court in Houston.
The filing follows unsuccessful attempts to refinance approximately $6 billion in debt. According to court documents, Carnaby/Capital Holdings lists between $500 million and $1 billion in assets, with liabilities potentially reaching as high as $10 billion.
First Brands has faced criticism in published reports for its borrowing practices, including the use of off-balance sheet debt tied to invoices and inventory. Some lenders have voiced concerns about poor disclosure of the company’s finances, making it difficult to determine the full extent of the firm’s obligations.
The bankruptcy filing affects a number of high-profile automotive brands. Among them are Luber-Finer filtration products, produced in Albion, and Airtex fuel and water pumps, which were formerly manufactured in Fairfield. Other brands operated by First Brands include Anco windshield wiper blades, Raybestos brake parts, and Autolite spark plugs.
The impact of the bankruptcy on local operations in Albion remains uncertain as the company works through the restructuring process.
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