Robert Smith

In this insightful discussion, Robert Smith and Ortenca Aliaj, both Financial Times editors, unravel the shocking collapse of First Brands Group, a small auto parts supplier with a staggering $12 billion in hidden debt. They explore the opaque financing tactics that obscured financial risks and discuss the lack of due diligence by lenders. From Patrick James's mysterious background to the broader implications for private credit, they raise critical concerns about the future of funding practices in a post-2008 financial landscape.

Robert Smith, Corporate Finance Editor at the Financial Times, sheds light on the shocking $12 billion bankruptcy of First Brands Group. With deep expertise in bankruptcies and private credit, he unpacks the company’s complex capital structure and the hidden liabilities revealed during the proceedings. Smith warns of the potential for broader instability in the private credit market, comparing First Brands to other recent failures. He also critiques the transparency of financial institutions involved and discusses the implications for investors and managers.

Robert Smith, Corporate finance editor at the Financial Times, and Ortenca Aliaj, Banking editor at the Financial Times, dive into the shocking collapse of First Brands Group, a car parts supplier drowning in hidden debt. They discuss the dubious tactics of founder Patrick James and highlight Jefferies' role in the financing debacle. The duo raises alarms about the private credit market's vulnerabilities and the ramifications for financial institutions. With discussions on due diligence failures and regulatory concerns, the conversation uncovers the intricate web of risk in modern lending.