(RTTNews) - Garrett Motion Inc. (GTX) said that it has commenced voluntary Chapter 11 cases with the United States Bankruptcy Court for the Southern District of New York.
KPS Capital Partners agreed to acquire substantially all of the assets of Garrett Motion for about $2.1 billion.
In connection with its reorganization, the company has entered into a restructuring support agreement with holders of about 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.
The company noted that the proceeds of the new financing will supplement cash flow from ongoing operations and bolster the Company's liquidity position during the Chapter 11 cases.
The company anticipates emerging from the Chapter 11 and completing the sale process in early 2021. Upon the closing of the transaction, Garrett will operate as a private company.
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