Garrett Motion Rejects Rival Creditor Offers for Bankruptcy Loan
- Initial financing package was revised, re-submitted by lenders
- Company said Oaktree and Centerbridge terms less desirable
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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.
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.