KUALA LUMPUR, Sept 25 — Lenders to US-based car parts supplier First Brands Group are racing to stabilise the company as it teeters on the brink of bankruptcy, with markets bracing for a potential multibillion-dollar debt shake-up, the Financial Times reported.

Owned by Malaysian-born entrepreneur Patrick James, First Brands has borrowed nearly US$6 billion (RM25.3 billion) in private loans, alongside billions more in financing tied to customer invoices and inventory.

Some top creditors are exploring rescue loans that would rank ahead of existing debt, while concerns have mounted since the company paused a US$6 billion refinancing plan last month and appointed Deloitte to carry out a “quality of earnings” review, FT said.

The supplier has also tapped specialist private credit firms, including Jefferies’ invoice-focused fund Point Bonita Capital and UBS O’Connor, for financing backed by supplier and customer invoices.

Rating agencies have flagged the rising use of invoice factoring and supply-chain finance, with billions potentially outstanding under these facilities.

James, who owns First Brands via his Ohio-based holding company Crowne Group, has kept a low public profile.

Born in Kuala Lumpur, he moved to the US for college in Ohio.

SEC filings describing his background are minimal, noting only that “Mr James has extensive experience in the automotive after-market industry.”

Over a decade ago, he and linked companies faced fraud allegations in civil suits from lenders; he denied the claims and the cases were dismissed after settlements.

First Brands expanded rapidly through debt-fuelled acquisitions, beginning with Crowne Group’s 2014 purchase of Missouri-based windscreen wiper maker Trico, before rebranding as First Brands Group in 2020.

As creditors weigh options, discussions include issuing new senior debt to cover off-balance sheet obligations or filing for bankruptcy to secure a debtor-in-possession loan with priority over existing lenders.

The company has hired Lazard, Weil Gotshal, and Alvarez & Marsal for restructuring advice, while its creditors are supported by Gibson Dunn and Evercore.

First Brands did not immediately respond to requests for comment.