First Brands Group LLC faced bankruptcy concerns due to financial reporting issues. Despite blacklisting Apollo Global Management, Apollo found a way to short First Brands’ debt without owning loans. First Brands relied on opaque financing, leading to bankruptcy. Apollo and Diameter Capital Partners made short bets against First Brands. Both have closed their shorts.

Read more at Yahoo Finance: Apollo Sidestepped Blacklist to Short Ailing First Brands’ Loans