Goldman Has ‘Serious Doubts’ First Brands Will Avoid Bankruptcy

(Bloomberg) -Bir Goldman Sachs Group Inc. Analysts at the Trade Desk told customers that they had “serious doubts”.

In a note on Wednesday morning, analysts expressed their concerns about the financing regulations of the first brands with interest rates in the north of 30%, according to a copy of the message seen by Bloomberg. Analysts wrote that their research is based on public files.

Companies and creditors are talking about different ways of restructuring a $ 6 billion debt, including a potential section 11 filing. The loans of the first brands rolled in recent weeks due to increasing concerns about the use of non -balance tactics known as factoring that companies use to sell their future revenues immediately.

“Since we all understand how to play, it is to find the nature of all different factors and unusual financing arrangements they have, Bank wrote. “Our analysts found a few interesting tidbit who appeared outside the balance sheet but difficult to compromise.”

Analysts who work side by side with merchants outside the Bank’s research department argue that most of the challenges have already become a wide syndication debt of the first brands. Table, the first foreclosure loans of the first brands on Wednesday on the dollar between 44.5 and 46.5 cents stated.

Goldman Sachs representative refrained from commenting. The first brands did not respond to comments.

Creditors to the first brands that make windscreen wipers, water pumps and filters are currently dealing with billions of dollars of losses. Goldman said that the biggest questions for investors are in the magnitude of a potential debtor financing that may be priority compared to the current creditors, and that the general profitability of the balancing layer and the reorganized company is around the amount of shares that will be left in loans.

-Help from Laura Benitez.

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