First Brands Group: dude, where’s my cash?

In scenes reminiscent of the spreading contagion during the 2008 financial crisis, but centred entirely around a bankrupt maker of spark plugs and carburettors based in Cleveland, this week alone the Financial Times and Bloomberg have reported that:

Jefferies earned undisclosed fees on financing it provided to First Brands 

A fund at UBS O’Connor holds 30 per cent exposure linked to First Brands

A Jefferies fund has $715mn of exposure to First Brands invoices

Cantor Fitzgerald is seeking to restrike its deal to buy O’Connor from UBS on the back of the fiasco

Western Alliance has exposure to the auto parts maker via leverage facilities it provided to Jefferies

BlackRock is seeking to redeem its cash from the Jefferies fund in question

A key First Brands creditor claims as much as $2.3bn has ‘simply vanished’

A JV between Japan’s Norinchukin Bank and Mitsui & Co. faces $1.75bn of exposure linked to First Brands

Insurers such as Allianz are preparing for a wave of potential claims relating to First Brands