GTXMQ - Garrett Motion preserves $2.6B stalking horse bid

Garrett Motion (GTXMQ) announced on Friday, October 23, 2020, that it secured Court approval of bidding procedures for a competitive process to either sell the business of Garrett or raise equity capital for a stand-alone plan of reorganization. Garrett also obtained on Friday approval of ‘stalking horse’ bidding protections for affiliates of KPS Capital Partners, including a $63M dollar termination fee and expense reimbursement.KPS agreed to, among other things, increase its ‘stalking horse’ bid by $500M to $2.6B.Auction date set for December 18.“Garrett is pleased to have obtained the recent relief from the Court, including approval of our debtor-in-possession financing and customer, supplier and vendor programs, as well as the auction procedures and the preservation of the current $2.6B  bid by KPS,” said CEO Olivier Rabiller.Shares climber 23.3% on Friday.

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Garrett Motion preserves $2.6B stalking horse bid