The insolvency of First Brands is worrying more and more potentially affected investors. In recent weeks, the German press has also been reporting more extensively on the topic, as shown by recent articles in Börsen-Zeitung, WirtschaftsWoche and Handelsblatt with quotes from Stephan Bausch and Borbála Dux-Wenzel. See also our latest blog post from 10 November 2025.
We have also been contacted by institutional investors, in part based outside Germany, to analyze possible reactions to the First Brands insolvency. The investigation and development of the facts are still at an early stage, giving potentially affected investors the opportunity to prepare and plan their next steps at an early stage.
First Step: Structured investigation of the facts
The investment structures of funds in supply chain financing via vehicles and securitizations are typically manifold and complex. It is important for investors to first carry out a structured, targeted investigation of the facts and secure evidence.
The initial goal is to determine whether there has been an investment in the affected UBS/O'Connor funds and whether there is a connection to the insolvency of the First Brands Group. We support investors in particular in screening their portfolios, obtaining information from the First Brands Chapter 11 proceedings, and asserting claims for information against portfolio managers.
It is equally important to analyze the specific circumstances that led to the investment in order to identify any breaches of duty by parties involved in the investment, e.g. advisors, brokers, fund managers, or banks. In this regard, we support investors in purposefully investigating the facts and gathering required evidence.
Second Step: Analysis of claims and litigation risks as well as the cost/benefit ratio
After analyzing the legal situation with regard to possible claims for damages on the basis of thoroughly investigated facts, strategic considerations regarding concrete enforcement actions should follow. In addition to procedural risks, the cost/benefit ratio in particular should be taken into account in order to assess the overall economic outcome of a possible enforcement of claims.
It has already become apparent that the distribution channels of UBS funds, for example in Germany, Luxembourg, or Switzerland, vary significantly. For this reason, we are working together with our Luxembourg team of lawyers and the Swiss law firm LALIVE. This collaboration has already proven successful in our representation of affected investors in connection with the Credit Suisse/UBS/Greensill complex.
If you have any questions about asserting potential claims in connection with the First Brands insolvency, please do not hesitate to contact our authors.
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