roll up

A group of hedge funds agreed to provide First Brands with a $1.1 billion debtor-in-possession loan, along with a $3.3 billion roll-up of their existing claims.

First Brands’ trade financiers and creditors who opposed the bankruptcy loan raised concerns about the size of the roll-up, noting that it could inhibit their ability to be repaid.

One of First Brands’ largest lenders, Onset Financial, said in court papers last week that the roll-up portion of the bankruptcy loan was trading at 40 cents on the dollar, reflecting investor concerns that the loan wouldn’t be fully repaid.

Onset Financial, one of the largest lenders to First Brands, said in court papers filed last week that the roll-up portion of the bankruptcy loan was trading at 40 cents on the dollar, reflecting investor concerns that the loan wouldn’t fully be paid out.

Roll-up deals involving technology startups focused on overhauling companies with AI have become popular in the venture sector.