Welcome to WSJ Pro Bankruptcy's Daily Briefing. It's Thursday, September 11. In today's briefing, residential solar installer PosiGen is exploring restructuring options, including a possible bankruptcy, with the help of White & Case and FTI Consulting, after saying it faces significant financial difficulties and a liquidity strain.

Subprime auto lender Tricolor has filed for bankruptcy to liquidate as its securitization partner Fifth Third Bank said it faces a loss of up to $200 million on loans tied to the company.

PosiGen, a national residential solar-installation company, is considering restructuring options, including bankruptcy, according to people familiar with the matter.

The Louisiana-based solar developer is working with White & Case and FTI Consulting for advice on how to restructure its debt as it faces a liquidity strain brought on by its rapid growth, the people said.

Also, an independent board director at PosiGen is being advised by the law firm Weil Gotshal & Manges to consider options separately from the company’s decision-making, some people said.

Dallas-based Tricolor, which offers financing for risky customers who lack credit history or a Social Security number, filed for chapter 7 bankruptcy in a Dallas court to begin a liquidation process. Tricolor partnered with banks to package car loans into securitized asset-backed products and listed Fifth Third Bank, JPMorgan and Barclays in court papers Wednesday as among its largest secured creditors.

Fifth Third said in a securities filing Tuesday it expects to take a significant loss tied to fraud at one of its clients on a $200 million warehouse lending facility. Fifth Third didn’t name the client in the filing, but a person familiar with the matter said the disclosure was tied to Tricolor.

Massachusetts filed papers asking a bankruptcy court to deny requests for approval of $300 million in fees for lawyers and advisers working on the Steward Health Care Services case. The charges are excessive and unwarranted in light of the fact that other similarly situated top-ranking creditors are likely to get paid little or nothing, lawyers for the state said in court papers filed earlier this week.

After selling off all of its hospitals and medical practices, rather than focusing on minimizing the costs of managing the bankruptcy estate and winding the case down, bankruptcy professionals undertook time-consuming investigations that can be carried out by a plan litigation trust on a contingency basis, according to filings made by the state. Massachusetts was heavily involved in the case after providing millions of dollars in aid to help keep some of Steward's hospitals open. Meanwhile, creditors, such as suppliers that helped keep Steward’s operations humming, may have to wait two years or more for repayment. The total includes $119 million in fees for Weil Gotshal & Manges, the company’s main law firm

–Soma Biswas

Quantum's shares slid after the company logged lower revenue amid broader structural upheaval.

The stock was down 16% to $7.24 in post-market trading on Wednesday. At the close, shares had lost 84% of their value this year.

Quantum said after the bell that revenue in the first quarter, which ended June 30, declined 11% to $64.3 million.

The company's loss was $17.2 million, or $1.87 a share, which was an improvement from a loss of $19.8 million, or $4.15 a share, the prior year. The adjusted loss per share was $1.58, or 1 cent narrower than the previous year.

The maker of computer storage devices expects revenue in the second quarter to be $61 million at the midpoint, which would be a 13% drop from the prior year sales of $70.5 million. Quantum projects its adjusted loss per share to be 26 cents, plus or minus 10 cents.

In June, Quantum delayed its annual report because it was reviewing its accounting related to certain revenue contracts, and the application of standalone selling price under accounting standards.

Quantum named a new chief executive in June as it said it was restructuring debt and looking to transform its capital structure. Chief Financial Officer Lewis Moorehead resigned in August after about three months on the job. The company said at the time it expected the restatement to result in a $3.9 million decrease in third-quarter revenue.

–Katherine Hamilton

President Trump’s unprecedented bid to wrest greater control of the Federal Reserve barreled toward a suspense-filled conclusion Wednesday amid two parallel efforts to decide who will be able to participate at next week’s interest-rate meeting.

Late Tuesday, a federal judge granted Fed governor Lisa Cook an injunction that temporarily halted Trump’s attempt to remove her. The decision was a crucial legal victory for Cook—and the central bank’s independence more broadly—because it allows her to remain in her job, at least for now. It clears the path for her to vote at a consequential Fed meeting next week, when officials are expected to make their first interest-rate cut of the year.

On Wednesday morning, attention shifted to the Senate Banking Committee, where Republicans rushed to confirm a Trump adviser, Stephen Miran, to fill a separate vacancy on the Fed’s board, setting up the possibility of a Senate floor vote as soon as this week that would allow him to join the same meeting.

• A war of words between United Airlines and ailing Spirit Airlines executives escalated on Tuesday after the Chicago-based airline's chief questioned the bankrupt discounter's business model and expressed doubts if it could stay in the industry. Minutes later, Spirit responded. In a post on X, the Florida-based carrier said its customers love low fares and its premium product offerings. "Maybe that's why United executives can't stop yapping about us," the airline said. (Reuters)

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