First Brands CEO James mulls resignation

By Gnaneshwar Rajan and Ananya Palyekar

Oct 10 (Reuters) - First Brands Chief Executive Patrick James is considering leaving his position at the bankrupt auto parts supplier, a spokesperson for James said on Friday.

"Patrick James has always put the interests of First Brands Group ahead of his own and is evaluating his best path forward to help maximize value for its customers, suppliers, employees and lenders, including potentially relinquishing his role as CEO,” the spokesperson said in an emailed statement.

James' brother, Edward, has stepped down from his senior position in the company, said the Financial Times, which first reported the CEO was considering resigning.

First Brands, which makes filters, brakes and lighting systems for the automotive industry, filed for bankruptcy protection last month after its lenders began investigating irregularities in the company's financial reporting.

The company has $11.6 billion in total liabilities, according to court documents.

The U.S. Justice Department has launched a probe into First Brands' dealings with creditors and sent an inquiry to the company, Reuters reported on Thursday.

The probe is at an early stage, a person familiar with the matter said, adding that it is common for U.S. prosecutors to look into companies that publicly disclose losses affecting a large group of investors.

Financial firms exposed to First Brands include Jefferies JEF.N, which disclosed $715 million in exposure through Leucadia Asset Management, and UBS UBSG.S , which is assessing exposure on more than $500 million tied to the company.

First Brands, owned by founder Patrick James, racked up most of its long-term debt by acquiring other parts suppliers and auto repair services over the past 15 years.

The auto parts maker has appointed a special committee of independent board directors to investigate its off-balance-sheet financing arrangements and whether its invoices were factored in multiple times.