(Bloomberg) -- Funds under the UBS Group AG umbrella face more than half a billion dollars of exposure to bankrupt auto-parts supplier First Brands Group through various investment strategies, with one ranking as the biggest unsecured creditor, court documents show.  The auto-parts supplier filed for Chapter 11 protection in Texas late Sunday following a failed attempt to refinance $6 billion of loans and creditor concern over the company’s use of opaque off-balance-sheet financing. The board committee ap ...

Core Insights - An elevated level of bankruptcies continues to affect corporate America, with 117 large companies filing for Chapter 7 or Chapter 11 over the 12 months ending June 30, marking an 81% increase from the annual average of 44 from 2005 to 2024 [1][2] Bankruptcy Trends - "Mega-bankruptcies," defined as those by companies with over $1 billion in assets, rose to 32 during the studied period, up from 24 in the previous year and above the 20-year annual average of 23 [2] - The first half of 2023 saw 17 mega-bankruptcies, the highest in any half-year period since the COVID outbreak in 2020 [3] Drivers of Bankruptcies - Major factors cited by large filers include reduced demand or increased costs due to inflation, changes in consumer preferences, high operational and financing costs from elevated interest rates, and challenges in the regulatory and legal landscape [4] - Approximately half of mega-bankruptcy filers reported lasting negative impacts from the COVID pandemic, a decrease from 79% in the previous year [5] Industry Breakdown - The manufacturing sector accounted for the highest share of bankruptcy filings at 30%, followed by services (24%), finance/insurance/real estate (13%), transportation/communications/utilities (10%), and retail trade (10%) [5] Cryptocurrency Sector - The cryptocurrency sector has not experienced any bankruptcies since the first half of 2023, contrasting with the overall trend [6] Market Signals - U.S. financial markets have shown a complex landscape since early 2024, with equities experiencing strong but volatile gains amid economic uncertainties [6][7] - While the S&P 500 has rallied due to optimism around the Federal Reserve's easing monetary policy, credit markets have shown growing concerns, evidenced by widening high-yield credit spreads and increasing delinquency rates in the commercial real estate market [7] Liability Management Transactions - Liability management transactions (LMTs) are on the rise, with 46 completed in 2024, setting a new annual record, and an additional 27 transactions in the first half of 2025 [7]

[Music] Hello and welcome to Ask for a Trend. I'm Josh Lipton. Over the next half hour, we're breaking down the trends of today that'll move stocks tomorrow.There's a lot to keep track of, so we're focusing on what you need to know to get ahead of the curve. Here's some of the trends we're going to be diving into. Stocks climb Monday as investors eyed a looming US government shutdown.At the end of the session, all the major indices did end the day higher. The gaming world may be playing at a new level after ...

Long before being pushed to the brink of bankruptcy by concerns over its financial reporting, First Brands took steps to keep Apollo at bay https://t.co/mhkLLUDAZs ...

Analysts on a Goldman trading desk have told clients they have “serious doubts” that the auto-parts supplier First Brands will be able to avoid bankruptcy https://t.co/U70wXRBCTn ...

According to Bloomberg, the FTX Recovery Trust filed a lawsuit on September 23 in the U.S. Bankruptcy Court for the District of Delaware against Bitcoin mining firm Genesis Digital Assets and its co-founders Rashit Makhat and Marco Krohn, seeking to recover approximately $1.15 billion in assets allegedly transferred illegally by Sam Bankman-Fried using commingled and misappropriated FTX customer funds. https://t.co/IdUP3HESpO ...

Core Viewpoint - Omnicare Inc., a subsidiary of CVS Health Corp., has filed for Chapter 11 bankruptcy due to a $949 million civil judgment related to improper dispensing of prescription drugs, which is its largest unsecured debt [1][2]. Financial Position - Omnicare's Chapter 11 petition lists assets of at least $100 million and liabilities between $1 billion and $10 billion [2]. - The company has secured $110 million in Chapter 11 financing to support its operations during the bankruptcy process [3]. Strategic Options - The bankruptcy filing allows Omnicare time to evaluate options for resolving the judgment and addressing financial challenges in the long-term care pharmacy industry [4]. - Potential strategies include standalone restructuring or selling the business [4]. Industry Context - Omnicare has faced financial pressure from economic trends affecting long-term care facilities, such as a tightening job market, falling reimbursement rates, and a decline in the use of long-term care facilities in favor of outpatient care [6]. - Several clients of Omnicare in the long-term care sector have also filed for Chapter 11 bankruptcy, resulting in lost revenue and bad accounts receivables [7]. Operational Impact - The bankruptcy filing is expected to pause government efforts to collect the $949 million judgment against Omnicare [8].

Core Points - Bankruptcy is a legal process that provides relief from overwhelming debts but comes with specific limitations and obligations that must be adhered to [6][10][11] Group 1: Bankruptcy Process and Obligations - After filing for bankruptcy, individuals must complete a debtor education course to receive a discharge, and failure to comply with court orders can lead to case dismissal [1][2] - Both Chapter 7 and Chapter 13 bankruptcies require court oversight, including attending meetings and submitting documents [2][3] - There are waiting periods before individuals can file for bankruptcy again, with Chapter 7 requiring an 8-year wait and Chapter 13 a 4-year wait after a previous discharge [3][4] Group 2: Limitations Post-Bankruptcy - A bankruptcy filing significantly impacts credit reports, with Chapter 7 remaining for up to 10 years and Chapter 13 for up to 7 years, making it difficult to obtain new credit [6][7] - Certain debts, such as student loans, child support, and recent tax debts, are not dischargeable through bankruptcy [10] - Individuals cannot cosign loans immediately after bankruptcy due to being viewed as higher-risk borrowers [12][13] Group 3: Rebuilding and Financial Management - Rebuilding credit is essential after bankruptcy, and individuals are encouraged to adopt careful financial habits, including budgeting and using secured credit cards [14][15] - Honesty in future credit applications is crucial, as lying about past bankruptcy can lead to fraud charges [16][17] Group 4: Broader Implications - Bankruptcy can affect employment opportunities, particularly in finance-related jobs, and may complicate renting and insurance processes [20]

First Brands is discussing options with its creditors for restructuring its $6 billion debt load that include a possible Chapter 11 bankruptcy filing https://t.co/BCeCsHF1qS ...

Yellow Corp. and its largest shareholder failed to convince an appeals court to overturn a bankruptcy court’s ruling that the insolvent less-than-truckload (LTL) firm was liable for billions in debt claims by its pension funds. After Yellow Corp. shuttered operations and filed for bankruptcy in summer 2023, it withdrew from several pension plans that secured retirement benefits for the former trucking firm’s union workforce. During the Chapter 11 bankruptcy process, those funds came looking for what they b ...