US/EMEA Bankruptcy: First Brands proposes chapter 11 plan for one debtor, with chapter 7 conversion set for all other debtors
Kennedy Rose: Senior Reporter
29 April 2026
- How First Brands’ proposed Chapter 11 plan for Premier Marketing Group differs structurally from the Chapter 7 liquidation of its other debtors.
- Why the creation of a litigation trust reshapes potential recoveries for creditors across the capital structure.
- What the proposed credit bid and parallel estate-claims sale process could mean for valuation outcomes and control of litigation assets.
- How the plan reallocates risk and return among DIP lenders, secured creditors, and junior stakeholders, including incentive mechanics.
- What upcoming bid deadlines, disclosure review, and plan confirmation milestones signal for the timeline and execution risk of the restructuring.
Executive Summary
First Brands Group filed a chapter 11 plan for debtor Premier Marketing Group (PMG) that would establish a litigation trust for the benefit of certain creditors, while all other debtors under the First Brands umbrella would have their cases converted to a chapter 7 liquidation. The plan only covers PMG, but certain creditors of the First Brands Group debtors will be permitted to share in the recoveries realized by the litigation trust. After the effective date of the PMG plan, First Brands will convert the chapter 11 cases of all other debtors to chapter 7. The plan incorporates the terms of a settlement with the ad hoc group and unsecured creditors committee (UCC) that would transfer all estate claims of the First Brands debtors to the litigation trust, which will prosecute and monetize those claims for the benefit of First Brands’ creditors.



