Garrett Motion DIP, bid procedures hearing

21 Oct 2020
  • 1079812,
  • US Bankruptcy Court for the Southern District of New York,
  • Judge: Michael Wiles
  • Reporting by: Taylor Harrison

Summary +

Garrett Motion Inc will request approval of DIP financing and bid procedures at a hearing today (21 October) at 11am ET in the US Bankruptcy Court for the Southern District of New York.

Garrett creditors Centerbridge Partners and Oaktree Capital Management have teamed up with Garrett’s former parent, Honeywell International, in opposition to the proposed bid procedures, which contemplate a sale of the company’s assets to stalking horse KPS Capital Partners for USD 2.6bn. The three parties are proposing an alternative, competing transaction.

Garrett’s bid procedures are also getting pushback from an ad hoc group of senior noteholders arguing that fees may be unnecessary and the procedures are tilted in favor of a sale process, shirking potential reorganization proposals.

As for the DIP, the company is facing competing proposals. Garrett’s chosen USD 250m DIP is from an ad hoc group of first lien lenders, but the trio of Oaktree, Centerbridge, and Honeywell have a separate proposal that would also provide USD 250m in DIP financing.

Today’s bloggers are Taylor Harrison and Scott Flaherty

 

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