A U.S. Justice Department logo or seal showing Justice Department headquarters, known as "Main Justice," is seen in Washington, January 24, 2023. REUTERS/Kevin Lamarque

By Anirban Sen and Prakhar Srivastava

(Reuters) -The U.S. Department of Justice has launched an inquiry into the collapse of bankrupt auto parts maker First Brands Group, a person familiar with the matter told Reuters on Thursday.

The Justice Department is probing the company and its dealings with creditors, and has sent an inquiry to First Brands, the person said.

The probe is at an early stage, the source said, adding that it is common for U.S. prosecutors to look into companies that publicly disclose losses that affect a large group of investors.

No evidence of wrongdoing has been established so far, the source added.

There is no guarantee that the inquiry will result in a full-blown investigation that will lead to charges being filed against the company.

The Financial Times was first to report earlier on Thursday that the DOJ was probing First Brands.

First Brands, which makes filters, brakes and lighting systems for the automotive industry, filed for bankruptcy protection last month after its lenders began investigating irregularities in the company's financial reporting. The company has $11.6 billion in total liabilities, according to court documents.

The auto parts maker has separately appointed a special committee of independent board directors to investigate its off-balance sheet financing arrangements and whether its invoices were factored in multiple times.

The DOJ did not immediately respond to a request for comment, while First Brands declined to comment.

Financial troubles at First Brands and the recent bankruptcy of subprime lender Tricolor Holdings, have rattled debt investors and stoked fears of broader stress in corporate debt markets, according to bondholders and bankruptcy experts.

Some of the financial firms exposed to First Brands include Jefferies, which disclosed $715 million in exposure through Leucadia Asset Management, and UBS, which is assessing exposure on more than $500 million tied to the company.

(Reporting by Prakhar Srivastava in Bengaluru and Anirban Sen in New York; Editing by Shailesh Kuber)