Garrett Motion will seek approval of the disclosure statement for its plan on 16 February at 11am ET in the US Bankruptcy Court for the Southern District of New York. At the same hearing, the official committee of equity holders will seek approval of a motion to terminate the company’s exclusivity periods so it can pursue its competing plan.
The debtor has proposed a plan backed by Centerbridge Partners, Oaktree Capital Management and former parent Honeywell International (COH group) that settles the company’s long-running dispute with Honeywell and provides Garrett with a USD 1.05bn equity investment, a USD 200m rights offering, and payment in full of all other creditors and the right for shareholders to cash out at USD 6.25 per share.
The equity committee touts its own “far superior” plan with a USD 800m equity commitment backstopped by Atlantic Park and a commitment for USD 1.5bn in term loans and USD 350m revolver from Credit Suisse. Most significantly for shareholders, common stock holders would be unimpaired or have the option to cash out at USD 7 per share. The committee is asking Judge Michael Wiles of the US Bankruptcy Court for the Southern District of New York to terminate the debtor’s plan filing exclusivity periods so the committee’s plan can compete side-by-side.
Your bloggers today are Pat Holohan and Taylor Harrison.
- Debtor counsel
- Andrew Dietderich of Sullivan & Cromwell
- Debtor counsel
- Susheel Kirpalani of Quinn Emanuel Urquhart & Sullivan
- COH group counsel
- Dennis Dunne of Milbank
- Honeywell counsel
- Nicole Greenblatt of Kirkland & Ellis
- Official equity committee counsel
- Andrew Glenn of Glenn Agre Bergman & Fuentes