Welcome to WSJ Pro Bankruptcy's Daily Briefing. It's Monday, March 30. In today's briefing, a look at the true amount of software exposure hiding in some flagship direct-lending funds. In court, Multi-Color defeated another creditor appeal of its bankruptcy venue. 

Private credit's software exposure is bigger than advertised. A detailed analysis of four large direct-lending funds shows they have more exposure to software than their filings suggest. On average the four funds classified about 19% of their investments as software, while the Journal found their average software exposure to be about 25%.

PIK loans reach 14-year high. While business development companies have seen rapid growth, areas of concern have also ticked higher, such as loans falling into the payment-in-kind category and widening performance gaps. 

• Is Another Financial Crisis Lurking in Private Credit?

Multi-Color beats appeal of New Jersey venue. Label-maker Multi-Color has defeated an appeal brought by a group of dissenting lenders who opposed its bankruptcy case because of where it was filed.

The U.S. Court of Appeals for the Third Circuit declined to overturn a bankruptcy-court decision allowing Multi-Color to proceed with chapter 11 in New Jersey. Multi-Color used an Ohio-based entity called MCC-Norwood to file for chapter 11 in Trenton, relying on a $1 million New Jersey bank account to establish it had assets in the state.

The group of lenders said this wasn't a legitimate basis for venue in New Jersey and that the bankruptcy should either be dismissed or filed in another court. The appeals court declined to issue a writ of mandamus that would have quickly dismissed Multi-Color’s case- –Alicia McElhaney

First Brands finds buyer for intellectual property. First Brands has struck a deal to sell the intellectual property of 12 of its brands including Fram, Trico, and Autolite, for $25 million. PGI Northstar, which is backed by aftermarket supplier Premium Guard, has agreed to pay cash in addition to assuming certain liabilities tied to the brands.

These assets, housed under First Brands’ filters and plugs, Strongarm, and wipers business lines, have shuttered in the bankruptcy process after the original equipment manufacturers who are currently providing First Brands cash to continue operating declined to keep those brands operational. 

The brands served as collateral for First Brands’ debtor-in-possession lenders, who will receive the proceeds from the sale as long as it is approved by the judge overseeing the auto-parts supplier’s bankruptcy case.

First Brands still has not sold its towing and trailer business Horizon Global, auto interior and fluid management system maker TMD, and fuel and water pumps business. –Alicia McElhaney

J&J bankruptcy foe ousted in talc litigation. Johnson & Johnson failed for years to resolve its talc liabilities in chapter 11, but is now gaining ground outside of bankruptcy court by attacking the ethics of its leading mass-tort adversary.

FDIC preps bigger role for private equity in future bank failures. The Trump administration continued its efforts to loosen restrictions on private equity by eliminating a policy aimed at ensuring that buyout firms invest responsibly in troubled banks. The change reflects both the Trump administration’s private-equity-friendly policy orientation and its efforts to remove barriers to mergers and acquisitions, analysts say.

Share your tips, suggestions and feedback with the WSJ Pro Bankruptcy team: Alexander Gladstone; Jodi Xu Klein; Akiko Matsuda; Alicia McElhaney; Andrew Scurria; Becky Yerak. 

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