Welcome to WSJ Pro Bankruptcy's Daily Briefing. It's Wednesday, March 11. In today's briefing, First Brands has reached an agreement to sell the North American segment of its Walbro unit to Active Dynamics Group for $50 million as it looks to ward off a total corporate liquidation scheduled for late April.

First Brands Group has secured a buyer for its engine management and fuel systems business, Walbro, one of four units the bankrupt auto-parts supplier tries to sell before a liquidation is triggered at the end of April.

Active Dynamics Group, an original equipment manufacturer, has agreed to buy Walbro’s North American business for $50 million, assuming certain liabilities. The transaction is supported by Polaris Industries, Harley-Davidson Motor, Arctic Cat, Husqvarna and Mercury Marine. A hearing to rule on the sale is scheduled for Friday before Bankruptcy Judge Christopher Lopez in Houston.

The deal comes as First Brands and its DIP lenders have pivoted from restructuring talks to bankrolling litigation that could help the lenders recover at least some of their losses.

First Brands continues to negotiate with other potential buyers for its remaining business lines, including its towing and trailer business Horizon Global, auto interior and fluid management system maker TMD, and fuel and water pumps business Pumps. First Brands’ largest OEM customer, Ford, made a proposal for these companies that serves as the basis for negotiations with buyers.

–Alicia McElhaney

• Earlier: First Brands is racing to sell its brands in bankruptcy to avoid liquidating within roughly two months, according to people familiar with the matter.

Some of the world’s savviest investors suffered big dollar-figure losses last week after the conflict in the Middle East sent global markets on a wild ride, with oil prices surging and bonds selling off.

Citadel, Millennium Management and Point72 were among those hit by the market fallout, according to people familiar with the matter, as were Balyasny Asset Management and ExodusPoint Capital Management.

Millennium and Point72 each lost $1.5 billion last week, the people said, while Citadel lost about $1 billion in its fixed-income and macro business.

Kohl’s turnaround encountered some setbacks in the fourth quarter, but Chief Executive Michael Bender says progress isn’t always linear.

The department-store chain still ended 2025 on stronger footing than when the year started, he said, even if results in the recent quarter were softer than expected.

“While we’ve made progress addressing issues and strengthening areas of our foundation, that work will continue to be the focus for most of 2026,” Bender said on a call with analysts Tuesday.

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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