> The financial distress the company now finds itself in can be traced back to early August, when it was seeking to raise another $6 billion in loans. Through t

> The financial distress the company now finds itself in can be traced back to early August, when it was seeking to raise another $6 billion in loans. Through that process, investors started to raise questions about the numbers being presented. > In early September it was reported that Apollo Global Management had amassed a short position against the debt of First Brands Group, meaning that it stood to profit if the auto parts maker failed to continue paying its debt. > The news caused a rush for the exit and the value of its debt started collapsing, before a bankruptcy process was initiated to bring some order to what appeared to have become the equivalent of a bank run. First Brands said that its Chapter 11 cases pertain solely to US operations and it expects its global operations to continue uninterrupted. Makes me think of the subprime mortgage crisis. Everyone seemed to agree that it was fine to issue loans to an auto parts company so it accumulated multiple billions USD worth of loans before anyone finally noticed that it might not be able to repay the money it was borrowing.