First Brands files Chapter 11 plan as receivables fraud fallout deepens

First Brands Group has filed a Chapter 11 reorganisation plan and disclosure statement, marking a new stage in one of the most closely watched receivables and payables finance collapses in the US market.

The filing comes after months of scrutiny over alleged fraud involving factoring partners, accounts payable financing and lender collateral. The case has drawn attention across private credit, asset-based lending and trade receivables finance because of allegations that invoices were fabricated, altered or double-pledged.

Court records show the plan was filed late on 16 June, with the disclosure statement and solicitation versions filed on 17 June. That makes the latest filing a material new development in a case already being followed by lenders and investors exposed to working capital assets.

The US Department of Justice has alleged that First Brands sold billions of dollars of receivables that did not exist and provided false information to factoring partners and lenders. The company filed for bankruptcy in September 2025 after efforts to secure new financing failed.

For receivables finance providers, the case is likely to sharpen focus on invoice verification, borrowing-base controls, collateral monitoring and exposure to off-balance-sheet funding structures.

The latest filing does not resolve those issues, but it moves the bankruptcy process into a more formal restructuring phase. It also gives creditors, lenders and counterparties a clearer framework for assessing recoveries and litigation risk.

The wider industry impact may be felt well beyond the First Brands estate. Funders of receivables, payables and inventory-backed facilities are likely to face growing pressure to prove that controls can keep pace with increasingly complex working capital structures.