Garrett Motion noteholders object to stalking horse protections

By Sarah Lizee

Olympia, Wash., Oct. 16 – Garrett Motion Inc.’s ad hoc group of holders of its 5 1/8% senior notes due 2026 objected to the stalking horse bid protections outlined in its bidding procedures motion, according to a Friday filing with the U.S. Bankruptcy Court for the Southern District of New York.

“The stalking horse bid protections must be revised as they unnecessarily and improperly prejudice non-sale restructuring alternatives that may be appropriate in these cases,” the group said in its objection.

The group said that some parties, including the ad hoc group, have emerged that have expressed an interest in non-sale alternatives, including a restructuring through a stand-alone Chapter 11 plan.

A hearing is scheduled for Oct. 21.

Rolle, Switzerland-based Garrett Motion is a provider of passenger vehicle, commercial vehicle, aftermarket replacement and performance enhancement solutions. The company filed for Chapter 11 bankruptcy on Sept. 20 under case number 20-12212.

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