FS Credit Opportunities Confirms Zero Exposure to First Brands Bankruptcy

The firm clarified its position following First Brands’ bankruptcy filing late last month.

October 14, 2025

Timely Update Cuts Through Uncertainty

On October 14, FS Credit Opportunities Corp. announced that it no longer has exposure to First Brands Group, LLC—just two weeks after the automotive parts supplier filed for Chapter 11 bankruptcy protection.

The update, filed under Regulation FD, was brief but purposeful. It confirmed that FS Credit Opportunities had fully exited its position in First Brands ahead of the filing on September 29. In doing so, the company removed any uncertainty about potential credit risk tied to the bankruptcy.

First Brands had been operating under financial pressure for some time, with supply chain disruptions and interest rate headwinds pushing the company into restructuring. As that unfolded, FS Credit Opportunities had already moved. The firm acted decisively to eliminate its exposure, ensuring that its portfolio would remain insulated from fallout tied to the filing.

What It Means for Investors

For credit investors, clarity like this matters. Bankruptcy events often raise questions about downstream impact and exposure. FS Credit Opportunities responded with transparency, making it easy for stakeholders to understand the firm’s current position. This kind of real-time disclosure helps investors stay focused on fundamentals, rather than scrambling to interpret risk after the fact.

The statement, signed by General Counsel Stephen Sypherd, did not include any other portfolio updates or operational changes. Instead, it delivered one clear message: there’s no exposure, and no action is required.