First Brands insolvency and UBS funds: What investors in UBS/O'Connor funds should do now

[Translate to English:] First Brands Insolvenz

The insolvency of First Brands Group, LLC (‘First Brands’) is increasingly preoccupying investors in the affected UBS/O'Connor funds. The first investors are taking action and examining the prospects of initiating legal proceedings against those who may be responsible.

The insolvency of First Brands is increasingly preoccupying potentially affected investors. In recent weeks, the German press has also been reporting more extensively on the topic, as shown by recent articles in the Börsen-Zeitung, WirtschaftsWoche and Handelsblatt, which quote Stephan Bausch and Borbála Dux-Wenzel. See also our latest blog post from 10 November 2025.

We have also been contacted by institutional investors, some of whom are based outside Germany, to explore possible responses to the First Brands insolvency. The investigation and development of the facts are currently still at an early stage, giving potentially aggrieved investors the opportunity to prepare and plan their legal enforcement at an early stage.

Structured fact-finding as a first step

The investment structures of funds in supply chain financing via vehicles and securitisations are typically multi-layered and complex. It is important for investors to first conduct a structured, targeted investigation of the facts and secure evidence.

The initial aim is to determine whether an investment in the affected UBS/O'Connor funds has been made 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 analyse the specific circumstances that led to the investment in order to identify any breaches of duty by those involved in the investment, such as advisors, intermediaries, fund managers or banks. Here, too, we support investors in determining the facts in a targeted manner and gathering the necessary evidence.

Review of claims and litigation risks as well as cost/benefit analysis

After reviewing the factual and legal situation regarding possible claims for damages on the basis of a thorough analysis of the facts, strategic considerations regarding the enforcement of rights should follow. In addition to the litigation risks, the cost-benefit ratio in particular must 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 for UBS funds, for example in Germany, Luxembourg or Switzerland, vary greatly. For this reason, we are working together with our Luxembourg team of solicitors and the Swiss law firm LALIVE. This collaboration has already proven its worth in our representation of aggrieved investors in connection with the Credit Suisse/UBS/Greensill complex.

If you have any questions regarding the assertion of possible claims in connection with the First Brands insolvency, please do not hesitate to contact our authors.

Dr Stephan Bausch, D.U.
Partner
Cologne
stephan.bausch@luther-lawfirm.com
+49 221 9937 25782

Dr Borbála Dux-Wenzel, LL.M.
Partner
Cologne
Borbala.Dux-Wenzel@luther-lawfirm.com
+49 221 9937 25100

Dr Marco Jerczynski
Counsel
Essen
marco.jerczynski@luther-lawfirm.com
+49 201 9220 0

Stephanie Quaß
Counsel
Frankfurt a.M.
stephanie.quass@luther-lawfirm.com
+49 69 27229 25782