05:28 AM EDT, 10/13/2025 (MT Newswires) -- Jefferies Financial Group ( JEF ) said Sunday it will be able to absorb any losses or expenses related to its indirect exposure to auto-parts maker First Brands Group, which recently filed for bankruptcy.

"Relative to the scale of Jefferies, we are confident that any losses or expenses from these investments or otherwise in respect of First Brands can readily be absorbed and do not threaten our financial condition or business momentum," said Jefferies Chief Executive Rich Handler and President Brian Friedman.

Jefferies' investments in First Brands "effectively comprise" $43 million of Point Bonita's accounts receivables purchased from First Brands and a $2 million interest in First Brands' bank loans through Jefferies Finance's Apex platform, the executives said in a letter.

Jefferies is a 5.9% investor in the Point Bonita fund, the executives said. They added, however, that Jefferies did not earn undisclosed fees on financing it provided to First Brands through a "side letter."