In less than two years since listing as a public company, Switzerland-based auto parts manufacturer, Garret Motion, has voluntarily filed for Chapter 11 bankruptcy. Following its spinoff from parent Honeywell International Inc. and the harsh impact of the Coronavirus, Garrett Motion’s bankruptcy filing will protect capital and long-term business sustainability. The company has proposed a $2.1 billion sale of its business to KPS Capital Partners, LP.
“Although the fundamentals of our business are strong and we have continued to try to develop our business strategy, the financial strains of the heavy debt load and liabilities we inherited in the spin-off from Honeywell – all exacerbated by COVID-19 – have created a significant long-term burden on our business,” said Garrett President and CEO Olivier Rabiller.
Garrett has tapped private-equity KPS Capital Partners to acquire the company’s assets.