Aftermath of First Brands bankruptcy: UBS Group AG (UBS.US) credit fund faces a 10% write-down.

According to sources, UBS Group AG (UBS.US) may write down more than 10% of its credit funds managed by its hedge fund department O'Connor after the bankruptcy of US auto parts supplier First Brands. Earlier this month, UBS Group AG stated that it is liquidating its investment funds managed by the hedge fund department O'Connor, with most assets expected to be realized by the end of the year. UBS Group AG stated: "As a priority, we are taking measures to protect client interests and maximize recovery of remaining positions related to First Brands Group through complex bankruptcy proceedings." In September of this year, court documents revealed that the auto parts supplier First Brands Group Holdings had filed for bankruptcy protection in Texas, with liabilities in the range of $10 billion to $50 billion. According to a lawsuit filed on September 28 in Texas court, the private equity firm's asset size also ranges between $1 billion and $10 billion, with its portfolio including well-known brands such as Anco and Trico wiper blades, as well as Fram filters.