GTX - Garrett Motion authorized to tap KPS as lead bidder

Judge Michael Wiles of the U.S. Bankruptcy Court in New York has allowed Garrett Motion (GTX) to designate a sale to KPS Capital Partners as the company's best offer to date, and approved $84M in breakup fees and expenses for the proposed deal.The private equity firm initially offered $2.1B for the bankrupt auto supplier, but has since raised its bid to $2.6B.Winning the stalking-horse title was a key hurdle for KPS, as a majority of Garrett's shareholders oppose the deal, as well as former parent Honeywell (HON). The latter is the creditor with the most to lose if the bankruptcy sale goes through as it's embroiled in a legal dispute with Garrett over product-related asbestos injuries.Last week, shareholders Oaktree Capital and Centerbridge Partners teamed up with Honeywell to launch a competing offer for Garrett, under which stakeholders would retain equity control, while bonds, loans and unsecured creditors would be paid

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Garrett Motion authorized to tap KPS as lead bidder