UBS Funds Face Half-Billion-Dollar Exposure to First Brands

(Bloomberg) Funds under the UBS Group AG umbrellas in a ranking as the largest insistent creditor, and the bankruptcy automobile parts supplier is exposed to more than half billion dollars to the first brand group.

Automatic Parts Supplier applied for a $ 6 billion -dollar loan and creditor concern for the company’s attempt to re -finance the use of non -balancing financing to the protection of Part 11 in Texas on Sunday. The Board of Directors Committee, which is appointed as part of bankruptcy, is investigating the use of this balancing layer financing of the first brands.

While UBS Hedge Fund Solutions has the largest insistent creditor with a $ 233.7 million claim to provide supply chain financing, O’Connor, a hedge fund business that UBS has recently agreed to sell to Cantor Fitzgerald, has a similar claim for $ 116.1 million.

Meanwhile, UBS portfolio management made more than $ 160 million, including a basket facility in order to collect funds from private credit providers in June.

This company is also part of a group of guaranteed loans that provide fresh capital to the first brands in the form of a $ 1.1 billion bankruptcy loan to help to continue during the court process.

UBS spokesman Bloomberg told Bloomberg. “In this extremely fluent situation, we are working to determine the potential performance effect on the small number of our affected funds and we focus on protecting the interests of our customers.”

Earlier this year, Cantor agreed to purchase the O’Connor unit of UBS, which is a $ 11 billion asset assets and six investment strategies under the administration. The process is expected to close in the fourth quarter. This will end the ownership of more than thirty years by the Swiss Bank and place the risk protection background back to the control of one of the first founders.

-Help from Jonathan Randles, Myriam Balezou and Olivia Fishlow.

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