First Brands CEO Patrick James weighs resignation
Patrick James, Chief Executive Officer of First Brands Group, is considering stepping down from his role at the bankrupt auto parts supplier, according to a statement from his spokesperson on Friday.
“Patrick James has always prioritized the interests of First Brands Group and is assessing his best path forward to create value for customers, suppliers, employees, and lenders — including potentially stepping down as CEO,” the spokesperson said in an email, News.Az reports, citing Reuters.
The Financial Times first reported that James is mulling resignation, noting that his brother Edward James recently left his senior position at the company.
First Brands — a maker of filters, brakes, and lighting systems for the automotive sector — filed for bankruptcy protection last month after lenders began investigating financial irregularities.
Court filings show the company holds $11.6 billion in liabilities.
The U.S. Department of Justice has also launched an inquiry into First Brands’ dealings with creditors, according to sources familiar with the matter. The probe remains in its early stages, but such reviews are common when large investor losses are disclosed.
Financial institutions linked to First Brands include Jefferies Financial Group (NYSE: JEF), with a reported $715 million exposure via Leucadia Asset Management and UBS Group AG (SWX: UBSG), assessing potential exposure of over $500 million
Founded and owned by Patrick James, First Brands accumulated much of its long-term debt through a series of acquisitions in the automotive parts and repair industry over the past 15 years.
The company has also formed a special committee of independent directors to examine its off-balance-sheet financing arrangements and investigate whether invoices were counted multiple times in financial reports.
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