A US bankruptcy court has ordered First Brands Group into liquidation, rejecting a restructuring plan that would have pursued claims worth more than $25 billion paid out by the company before its 2025 bankruptcy, multiple media outlets reported Monday.

Judge Christopher Lopez of the bankruptcy court in Houston described the Chapter 11 plan as "unconfirmable under any circumstances," citing defects that violated bankruptcy laws, according to the reports.

Lopez cited several technical deficiencies in the plan, including uncertainty around realizing litigation proceeds and the structure of the sale of litigation claims, the reports added.

First Brands founder Patrick James faces criminal fraud charges tied to alleged fabricated invoices and double-pledging of loan collateral, and two senior finance executives at the company have pleaded guilty to fraud charges, according to the reports.