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Auto-parts maker Garrett Motion files for bankruptcy

Christian Fernsby ▼ | September 21, 2020
Garrett Motion announced that it has entered into an agreement with KPS Capital Partners with respect to a potential purchase of its business and commenced voluntary Chapter 11 cases with the United States Bankruptcy Court for the Southern District of New York in order to implement the purchase.
Garrett Motion
Bankruptcy   Garrett Motion
In connection with its reorganization, the Company has entered into a Restructuring Support Agreement with holders of approximately 61% of the Company’s outstanding senior secured debt as of the date of the chapter 11 filing and is seeking Court approval of $250 million of debtor-in-possession financing, arranged by Citigroup.

Topics: Garrett Motion

The proceeds of the new financing, which is subject to Court approval and the satisfaction of other conditions precedent, will supplement cash flow from ongoing operations and bolster the Company’s liquidity position during the Chapter 11 cases.

The KPS stalking horse transaction agreement is subject to higher or better offers in the bankruptcy case.

Closing of the transaction is subject to customary regulatory approvals, as well as court approval and other customary conditions.