Autoparts maker Garrett Motion Inc on Friday obtained court approval to move ahead with an auction and sale process in which private equity firm KPS Capital is providing the lead bid, despite a competing proposal from shareholders led by Centerbridge Partners and Oaktree Capital Management.

Following arguments on Wednesday, U.S. Bankruptcy Judge Michael Wiles in Manhattan signed off on the sale procedures during a telephonic hearing on Friday. Garrett, represented by Sullivan & Cromwell, filed for Chapter 11 protection in the U.S. Bankruptcy Court for the Southern District of New York in September amid legal disputes over $1.3 billion in asbestos liabilities with its former parent, Honeywell International, and $1.9 billion in funded debt.

announced that it has received an improved stalking horse bid from KPS Capital Partners, LP (“KPS”) with respect to a potential purchase of its business. The Company is continuing with its competitive bidding process, and seeking approval of bidding procedures and stalking horse bid protections from the bankruptcy court.

In the beginning of this week Garrett announced that it has received an improved stalking horse bid from KPS Capital Partners with respect to a potential purchase of its business. The Company continued with its competitive bidding process, and sought approval of bidding procedures and stalking horse bid protections from the bankruptcy court.

Source: Reuters

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