First Brands Creditors Seek Lawsuit Against Aequum Over $44M Fraud Allegation, Filing Shows

According to court documents filed on June 2, an unsecured creditor committee is seeking to sue Aequum Capital Financial II, alleging the lender overlooked fraud red flags before auto parts maker First Brands' bankruptcy. The committee contends that Aequum loaned $44 million to a special purpose vehicle (SPV), which subsequently transferred the funds to a company affiliated with First Brands founder Patrick James.
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