UBS Group AG has informed clients that it will liquidate an investment vehicle with substantial exposure to First Brands Group debt, according to sources familiar with the matter.

The bank notified clients of its Chicago-based subsidiary, O’Connor, that several invoice financing funds are being wound down, including one strategy without any First Brands exposure.

"We informed investors last month that O’Connor’s Working Capital Opportunistic Fund is being liquidated, with the majority of its assets expected to be divested by year-end," UBS stated.

"As a top priority, we are taking steps to protect client interests by maximizing recovery of remaining First Brands Group-related positions through the complex bankruptcy process."

UBS plans to divest approximately 70% of the O’Connor fund’s assets tied to First Brands by the end of the year.