First Brands grew on invoices pledged twice — then $2.3B vanished

First Brands Group — founded in 2013 as Crowne Group, renamed in 2020, owner of Trico, FRAM, Raybestos and Autolite — ran over $5 billion of revenue and 26,000 employees. Much of its growth was financed off balance sheet, by factoring: borrowing against invoices through the Raistone platform and funds such as Point Bonita Capital, managed by Jefferies.

In late September 2025 the company filed Chapter 11 in the Southern District of Texas, listing $10–50 billion of liabilities against $1–10 billion of assets. Within days creditors alleged that the same receivables had been pledged to more than one funder. Raistone said $2.3 billion had 'simply vanished'; First Brands' own counsel told the court around $1.9 billion had not been turned over to the factoring companies, and that segregated accounts meant to protect creditors held $0.

The damage spread far beyond the company. Jefferies disclosed $715 million of exposure through its fund; Katsumi Global — the US factoring arm of Japan's JA Mitsui Leasing — was owed roughly $1.75 billion. The US Department of Justice opened a criminal investigation in October 2025, and an official disclosure in February 2026 reported that the founder and related individuals had been indicted on fraud charges, which remain allegations until proven in court.