10/30/2025
An alert student in the ethics class made this post regarding BDO and First Brands, the auto parts maker taking bankruptcy.
Microsoft Word - FBG - Motion for the Appointment of an Examiner 4136-2869-4625 8
How Jefferies Found Itself at the Center of First Brands’ Collapse
BDO audit credibility questioned after First Brands collapse | Crain's Chicago Business
BDO chief pledges fight over ‘falsehoods’ on First Brands work
Thought I'd provide some current news regarding a firm not part of the Big 4, BDO.
First Brands has declared chapter 11 bankruptcy with the main focus being that $2.3 Billion was supposed to be paid to First Brands by First Brands turning over their receivables to financiers, yet they can't "find" the money. During their bankruptcy filing, 750 lawyers were in attendance, is that normal? Two of BDO's lawyers were also in attendance.
Who was their auditor? BDO.
How was the $12B in debt disclosed during the bankruptcy filing not shown in the balance sheet when BDO had audited them just months earlier and received a clean bill of health? It gets more interesting, Apollo is the principal financier of BDO, which Apollo is also known to take a short position on First Brands' debt. BDO has also been cutting staff in audit and tax this year, one must question if First Brands as their client contributed to that. What is the revenue generated from First Brands by BDO, one must question.
Time will tell what comes of this whole situation, something interesting to monitor.
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