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Garrett Motion Announces Amendments to Credit Agreement
Credit Agreement Modifications Significantly Increase Garrett’s Financial Flexibility ROLLE, Switzerland--(BUSINESS WIRE)-- Garrett Motion Inc. (NYSE: GTX),
About this update from Garrett Motion Inc.
[{"type":"text","content":"\nCredit Agreement Modifications Significantly Increase Garrett’s Financial Flexibility\n\n ROLLE, Switzerland--(BUSINESS WIRE)--\nGarrett Motion Inc. (NYSE: GTX), a cutting-edge technology provider that enables vehicles to become safer, more connected, efficient and environmentally friendly, today announced it has reached an agreement with its senior lenders under the company’s Credit Agreement providing for covenant relief for up to a two-year period through June 30, 2022.\n\n\n“The modifications to our Credit Agreement significantly enhance Garrett’s financial flexibility to weather the current pandemic-induced economic slowdown,” said Olivier Rabiller, Garrett President and CEO. “We appreciate the support of our lending group as we continue to take decisive actions to operate in this challenging environment. Going forward, our focus remains on ensuring the long-term financial health of our company while meeting customer commitments, supporting our local communities, and safeguarding the health and well-being of our employees.”\n\n\nIn connection with Garrett accomplishing this agreement with its lenders, Honeywell withdrew its previously issued Notice of Default. Garrett believes that Honeywell’s action had no merit and was an improper attempt to interfere with Garrett’s contractual arrangements with its lenders and to delay Garrett’s ongoing litigation against Honeywell concerning a subordinated asbestos indemnity imposed on Garrett in connection with the 2018 spin-off. Garrett has and will continue to take appropriate actions to defend itself against any of Honeywell’s attempts to interfere with Garrett’s operations as an independent company.\n\n\nRabiller also stated, “While the successful completion of the bank amendment is an important step in Garrett Motion sustaining its liquidity, we will continue to explore further opportunities to optimize our capitalization to ensure that the business is positioned for success in an evolving environment. In particular, this crisis has exacerbated the challenges associated with operating under the onerous Honeywell Subordinated Indemnity and Mandatory Transition Tax (MTT) liabilities, and highlights the fact that the current situation with Honeywell continues to adversely impact our overall strategic and financial flexibility.” As of March 31, 2020, the liability on Garrett’s balan...