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Distressed-debt giants Oaktree Capital Management and Anchorage Capital have amassed positions in the bankruptcy financing for First Brands Group.

Bankrupt auto parts maker First Brands Group has sued Edward James — its former executive and the brother of company founder Patrick James — and its largest creditor Onset Financial.

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.