Garrett Motion Rejects Rival Creditor Offers for Bankruptcy Loan

(Bloomberg) — Auto-parts maker Garrett Motion Inc. rejected an alternative bankruptcy loan offered by Oaktree Capital Management and Centerbridge Partners, and a second one from a group of bondholders, instead selecting a revised deal from senior lenders.



a screen shot of a computer: A monitor displays Garrett Motion Inc. signage on the floor of the New York Stock Exchange (NYSE) in New York, U.S., on Monday, Oct. 1, 2018. U.S. stocks rose toward records, while the Canadian dollar and Mexican peso gained after negotiators agreed to a new version of the Nafta trade pact.


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A monitor displays Garrett Motion Inc. signage on the floor of the New York Stock Exchange (NYSE) in New York, U.S., on Monday, Oct. 1, 2018. U.S. stocks rose toward records, while the Canadian dollar and Mexican peso gained after negotiators agreed to a new version of the Nafta trade pact.

The renegotiated debtor-in-possession loan from senior lenders is a “material improvement” from the original and is the best option available, Chief Restructuring Officer Bruce Mendelsohn said in court papers Monday. The revised terms remove certain milestones for the company in court, allow longer financing extensions and reduce certain fees.

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Representatives for Garrett Motion and Oaktree declined to comment.

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Auto-parts maker Garrett files for bankruptcy

Sept 20 (Reuters)U.S. auto-parts maker Garrett Motion Inc said on Sunday it filed for Chapter 11 bankruptcy protection, as it struggled with heavy debt due to a payment settlement dispute with former parent Honeywell International Inc HON.N and the COVID-19 pandemic.

Garrett said it entered into a “stalking horse” purchase agreement with private equity firm KPS Capital Partners LP for $2.1 billion.

The “stalking horse” agreement would imply that any other bids that come in must be higher than the offer made by KPS. The agreement is subject to court approval.

Garrett said it was also seeking court’s approval for a $250 million debtor-in-possession financing facility. Throughout the reorganization process, Garrett expects to operate without interruption.

The company listed both assets and liabilities in the range of $1 billion and $10 billion, according to a filing with the U.S Bankruptcy Court for the Southern District of New

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