U.S. Trustee Challenges First Brands Bankruptcy Plan Over Preferential Treatment Concerns
The U.S. Trustee, acting as the government’s bankruptcy watchdog, filed a formal objection this week in a Delaware court, calling for a trustee-led liquidation of auto-parts manufacturer First Brands Group. The filing alleges that the company’s current reorganization proposal improperly prioritizes the interests of specific lenders and legal professionals over the broader pool of creditors….