(Updates to reflect Morgan Stanley's calculation of maximum potential exposure in the headline and the seventh paragraph and to include recent stock movement in the eight paragraph.)

Jefferies Financial Group (JEF) said Wednesday First Brands Group filed for bankruptcy on Sept. 29, detailing its exposure to the bankrupt company through Point Bonita Capital and Apex Credit Partners.

Point Bonita, a Leucadia Asset Management division, manages about $3 billion in trade-finance assets backed by $1.9 billion of equity, 5.9% of which is owned by LAM, and holds roughly $715 million of receivables largely owed by Walmart (WMT), AutoZone (AZO), NAPA, O'Reilly, and Advance Auto Parts (AAP), the company said.

Payments had been timely until Sept. 15, when First Brands stopped directing transfers. Advisers are probing whether receivables were routed to other factors or factored more than once, Jefferies said.

Jefferies is in talks with First Brands' advisers to assess impacts and will act to protect Point Bonita and its investors, it said.

In addition, the company also said Apex Credit Partners, a Jefferies unit, manages CLOs with about $4.2 billion in assets and holds approximately $48 million of First Brands term loans across 12 CLOs and a warehouse, or around 1% of Apex-managed CLO assets.

Apex owns between 5% and 9.9% of each CLO's equity tranche plus portions of senior tranches for risk-retention compliance, and Jefferies holds no other First Brands securities, it added.

Morgan Stanley said in a note Wednesday that it calculated Jefferies' maximum potential losses at $44.6 million, lower than the $161 million in some media reports. It said $42.2 million of that is related to Point Bonita Capital and $2.4 million from Apex exposure.

Shares of Jefferies were down by more than 1% in recent trading.

Price: 58.35, Change: -0.75, Percent Change: -1.27