Garrett Motion Rejects Rival Creditor Offers for Bankruptcy Loan
(Bloomberg) — Auto-parts maker Garrett Motion Inc. rejected an alternative bankruptcy loan offered by Oaktree Capital Management and Centerbridge Partners, and a second one from a group of bondholders, instead selecting a revised deal from senior lenders.
![a screen shot of a computer: A monitor displays Garrett Motion Inc. signage on the floor of the New York Stock Exchange (NYSE) in New York, U.S., on Monday, Oct. 1, 2018. U.S. stocks rose toward records, while the Canadian dollar and Mexican peso gained after negotiators agreed to a new version of the Nafta trade pact.](https://www.msn.com/{"default":{"load":"default","w":"80","h":"53","src":"//img-s-msn-com.akamaized.net/tenant/amp/entityid/BB19vQUv.img?h=533&w=799&m=6&q=60&o=f&l=f"},"size3column":{"load":"default","w":"62","h":"42","src":"//img-s-msn-com.akamaized.net/tenant/amp/entityid/BB19vQUv.img?h=417&w=624&m=6&q=60&o=f&l=f"},"size2column":{"load":"default","w":"62","h":"42","src":"//img-s-msn-com.akamaized.net/tenant/amp/entityid/BB19vQUv.img?h=417&w=624&m=6&q=60&o=f&l=f"}})
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A monitor displays Garrett Motion Inc. signage on the floor of the New York Stock Exchange (NYSE) in New York, U.S., on Monday, Oct. 1, 2018. U.S. stocks rose toward records, while the Canadian dollar and Mexican peso gained after negotiators agreed to a new version of the Nafta trade pact.
The renegotiated debtor-in-possession loan from senior lenders is a “material improvement” from the original and is the best option available, Chief Restructuring Officer Bruce Mendelsohn said in court papers Monday. The revised terms remove certain milestones for the company in court, allow longer financing extensions and reduce certain fees.
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Representatives for Garrett Motion and Oaktree declined to comment.