Form 8-K
false 0001735707 0001735707 2020-11-20 2020-11-20

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

 

FORM 8-K

 

 

CURRENT REPORT

Pursuant to Section 13 or 15(d)

of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): November 20, 2020

 

 

GARRETT MOTION INC.

(Exact Name of Registrant as Specified in its Charter)

 

 

 

Delaware   1-38636   82-4873189

(State or other jurisdiction

of incorporation)

 

(Commission

File Number)

 

(I.R.S. Employer

Identification Number)

 

La Pièce 16, Rolle, Switzerland   1180
(Address of principal executive offices)   (Zip Code)

Registrant’s telephone number, including area code: +41 21 695 30 00

 

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

 

Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

 

Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

 

Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

 

Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

 

Title of each class

 

Trading

Symbol(s)

 

Name of each exchange

on which registered

None   None   None

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company  

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.  ☐

 

 

 


Item 7.01

Regulation FD Disclosure.

As previously disclosed, on September 20, 2020 (the “Petition Date”), the Company and certain of its subsidiaries (collectively, the “Debtors”) each filed a voluntary petition for relief under chapter 11 of title 11 of the United States Code (the “Bankruptcy Code”) in the United States Bankruptcy Court for the Southern District of New York (the “Bankruptcy Court”). The Debtors’ chapter 11 cases (the “Chapter 11 Cases”) are being jointly administered under the caption “In re Garrett Motion Inc., 20-12212.”

On November 20, 2020, the Debtors jointly filed a monthly operating report for the period from October 1, 2020 to October 31, 2020 (the “Monthly Operating Report”) with the Bankruptcy Court. A copy of the Monthly Operating Report is attached as Exhibit 99.1 to this Current Report on Form 8-K and is incorporated herein by reference. This Current Report on Form 8-K (including exhibits hereto) will not be deemed an admission as to the materiality of any information that is required to be disclosed solely by Regulation FD. The Monthly Operating Report and other filings with the Bankruptcy Court related to the Chapter 11 Cases are available electronically at www.kccllc.net/garrettmotion. This website address contains third-party content and is provided for convenience only. Third-party content is the responsibility of the third party, and the Company disclaims liability for such content.

The information furnished pursuant to this Item 7.01, including Exhibit 99.1, shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934 (the “Exchange Act”) or otherwise subject to the liabilities under that Section and shall not be deemed to be incorporated by reference into any filing of the Company under the Securities Act of 1933 or the Exchange Act.

Cautionary Information Regarding the Monthly Operating Report.

The Company cautions investors and potential investors not to rely upon the information contained in the Monthly Operating Report, which was not prepared for the purpose of providing the basis for an investment decision relating to any of the securities of the Company. The Debtors have prepared the Monthly Operating Report solely for the purpose of complying with the monthly reporting requirements of the Bankruptcy Court. The Monthly Operating Report is not presented on a consolidated basis and therefore does not present the consolidated results of the Company and its subsidiaries. In addition, only certain subsidiaries of the Company are Debtors, while other subsidiaries of the Company are not Debtors. The Monthly Operating Report is limited in scope, covers a limited time period, was not audited or reviewed by independent accountants, was not prepared in accordance with generally accepted accounting principles (“GAAP”), may not accurately reflect the condition of the Company or the other Debtors on a GAAP basis, is in a format prescribed by applicable bankruptcy laws or rules, is subject to future revision, adjustment and reconciliation, and should not be viewed as indicative of future results. The Monthly Operating Report also contains information for periods shorter and otherwise different from those contained in the Company’s reports required to be filed pursuant to the Exchange Act.

Forward-Looking Statements

This Current Report on Form 8-K and the exhibit hereto may contain “forward-looking statements” within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended. All statements, other than statements of fact, that address activities, events or developments that the Company or the Company’s management intend, expect, project, believe or anticipate will or may occur in the future are forward-looking statements. Although the Company believes forward-looking statements are based upon reasonable assumptions, such statements involve known and unknown risks, uncertainties, and other factors, which may cause the actual results or performance of the Company to be materially different from any future results or performance expressed or implied by such forward-looking statements. Such risks and uncertainties include, but are not limited to those described in the Company’s annual report on Form 10-K for the year ended December 31, 2019, as updated by the Company’s quarterly report on Form 10-Q for the period ended September 30, 2020, as well as the Company’s other filings with the Securities and Exchange Commission, under the headings “Risk Factors” and “Cautionary Statement Concerning Forward-Looking Statements.” You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this document. Forward-looking statements are not guarantees of future performance, and actual results, developments and business decisions may differ from those envisaged by the Company’s forward-looking statements.


Item 9.01

Financial Statements and Exhibits.

(d) Exhibits

 

Exhibit
No.

  

Description

99.1    Monthly Operating Report for the period from October 1, 2020 to October 31, 2020, filed with the United States Bankruptcy Court for the Southern District of New York.
104    Cover Page Interactive Data File (embedded within the Inline XBRL document).


SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

Date: November 20, 2020     Garrett Motion Inc.
    By:  

/s/ Jerome Maironi

      Jerome Maironi
      Senior Vice President, General Counsel and Corporate Secretary
EX-99.1

Exhibit 99.1

UNITED STATES BANKRUPTCY COURT

FOR THE SOUTHERN DISTRICT OF NEW YORK

 

In re Garrett Motion Inc., et al.,    Case No:    20-12212 (Jointly Administered)
Debtors    Reporting Period:    October 2020
   Fed. Tax I.D No.:    82-4873189

MONTHLY OPERATING REPORT

 

Required Documents

   Form No.    Document
Attached
   Explanation
Attached

Schedule of Cash Receipts

   MOR-1a    X   

Schedule of Cash Disbursements

   MOR-1b    X   

Bank Account Information

   MOR-1c    X   

Statement of Operations

   MOR-2    X   

Balance Sheet

   MOR-3    X   

Status of Post-Petition Taxes

   MOR-4a       X

Accounts Payable Aging

   MOR-4b    X   

Accounts Receivable Aging

   MOR-5    X   

Payments to Professionals

   MOR-6       X

Debtor Questionnaire

   MOR-7    X   

This Monthly Operating Report has been prepared solely for the purposes of complying with the monthly reporting requirements applicable in these chapter 11 cases and is in a format that the Debtors believe is acceptable to the U.S. Trustee. The financial information contained herein is limited in scope and covers a limited time period. Moreover, such information is preliminary and unaudited, and is not prepared in accordance with accounting principles generally accepted in the United States.

I declare under penalty of perjury that this report and the attached documents are true and correct to the best of my knowledge and belief.

 

/s/ Sean Deason

     November 20, 2020
Sean Deason     

Chief Financial Officer

 


GLOBAL NOTES AND STATEMENTS OF LIMITATIONS

AND DISCLAIMERS REGARDING THE DEBTORS’ MONTHLY OPERATING REPORTS

On September 20, 2020 (the “Petition Date”), Garrett Motion Inc. (“Garrett”) and 36 of its direct and indirect subsidiaries (collectively with Garrett, the “Debtors”), each commenced a voluntary case under chapter 11 of the Bankruptcy Code in the United States Bankruptcy Court for the Southern District of New York. The Debtors are authorized to operate their businesses and manage their properties as debtors in possession pursuant to sections 1107(a) and 1108 of the Bankruptcy Code. On September 21, 2020, the Bankruptcy Court entered an order authorizing the joint administration of these chapter 11 cases pursuant to Bankruptcy Rule 1015(b). On October 5, 2020, the United States Trustee for the Southern District of New York (the “U.S. Trustee”) appointed an official committee of unsecured creditors pursuant to section 1102(a)(1) of the Bankruptcy Code. On November 18, 2020, the U.S. Trustee appointed an official committee of equity securities holders pursuant to section 1102(a) of the Bankruptcy Code.

The following notes and statements and limitations should be referred to, and referenced in connection with, any review of the MOR (as defined below).

 

  1.

Basis of Presentation. The Debtors are filing their consolidated monthly operating report (the “MOR”) solely for purposes of complying with the monthly operating requirements applicable in the Debtors’ chapter 11 cases. The MOR is in a format acceptable to the U.S. Trustee. The MOR should not be relied upon by any persons for information relating to current or future financial conditions, events, or performance of any of the Debtors or their affiliates.

This MOR has not been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) and does not include all of the information and footnotes required by U.S. GAAP. Therefore, there can be no assurance that the consolidated financial information presented herein is complete, and readers are strongly cautioned not to place undue reliance on the MOR.

The unaudited financial statements have been derived from the books and records of the Debtors. The information furnished in this report includes primarily normal recurring adjustments but does not include all the adjustments that would typically be made for the quarterly and annual consolidated financial statements to be in accordance with U.S. GAAP. Certain adjusting entries (including, but not limited to, income tax expense and intercompany profit eliminations) are only prepared on a quarterly basis and therefore such adjustments included here are based on information as of September 30, 2020. No entry for the equity interest in earnings of unconsolidated entities is included in these financial statements. Furthermore, the monthly financial information contained herein has not been subjected to the same level of accounting review and testing that the Debtors apply in the preparation of their quarterly and annual consolidated financial information in accordance with U.S. GAAP. Accordingly, upon the application of such procedures, the Debtors believe that the financial information may be subject to change, and these changes could be material. This is the first filing of the MOR since the Petition Date. In future periods, any changes to prior period balance will be reflected in the current month’s MOR.

The results of operations contained herein are not necessarily indicative of results that may be expected from any other period or for the full year and may not necessarily reflect the consolidated results of operations and financial position of the Debtors in the future.

 

  2.

Reporting Period. Unless otherwise noted herein, the MOR generally reflects the Debtors’ books and records and financial activity occurring during the applicable reporting period. Except as otherwise noted, no adjustments have been made for activity occurring after the close of the reporting period.

 

  3.

Consolidated Entity Accounts Payable and Disbursement Systems. Cash is received and disbursed by the Debtors in a manner consistent with the Debtors’ historical cash management practices, as described in the Debtors’ Motion for Entry of Interim and Final Orders (I) Authorizing, But Not Directing, the Debtors to (A) Continue to Use Their Cash Management System, Including Existing Bank Accounts, (B) Pay or Honor Certain Prepetition Obligations Related Thereto and (C) Maintain Existing Business Forms, (II) Authorizing Intercompany Transactions, (III) Waiving the Requirements of Section 345(b) and (IV) Granting Related Relief [D.I. 14].

 

2


  4.

Accuracy. The financial information disclosed herein was not prepared in accordance with federal or state securities laws or other applicable non-bankruptcy law or in lieu of complying with any periodic reporting requirements thereunder. Persons and entities trading in or otherwise purchasing, selling, or transferring the claims against or equity interests in the Debtors should evaluate this financial information in light of the purposes for which it was prepared. The Debtors are not liable for and undertake no responsibility to indicate variations from securities laws herein or for any evaluations of the Debtors based on this financial information or any other information. The MOR has been signed by Sean Deason, Chief Financial Officer of Debtor Garrett Motion Inc. Accordingly, in reviewing and signing the MOR, Mr. Deason necessarily relied upon the efforts, statements, and representations of the Debtors’ other personnel and advisors. Mr. Deason has not (and could not have) personally verified the accuracy of each such statement and representation or financial information provided by the Debtor entities.

 

  5.

Debtor in Possession Financing. On October 23, 2020, the Debtors received authorization from the Bankruptcy Court to access $200 million in debtor-in-possession financing on a final basis pursuant to the Final Order (I) Authorizing Debtors to (A) Obtain Post-petition Financing and (B) Use Cash Collateral, (II) Granting Liens and Providing Claims with Superpriority Administrative Expense Status, (III) Granting Adequate Protection to the Prepetition Secured Parties, (III) Modifying the Automatic Stay, and (V) Granting Related Relief [D.I. 281] (the “DIP Order”). Please see the DIP Order for additional detail.

 

  6.

Payment of Prepetition Claims Pursuant to First Day Orders. Within the first four days of the Debtors’ chapter 11 cases, the Bankruptcy Court entered orders (the “First Day Orders”) authorizing, but not directing, the Debtors to pay, on an interim basis, certain prepetition (a) claims of critical vendors, shippers, warehousemen, other potential lien claimants, and foreign creditors; (b) taxes; (c) employee wages, salaries, and other compensation and benefits; and (d) obligations related to the use of the Debtors’ cash management system, among other things. The Bankruptcy Court subsequently approved the relief requested in connection with the First Day Orders on a final basis. To the extent any payments were made on account of prepetition claims following the commencement of these chapter 11 cases pursuant to the authority granted to the Debtors by the Bankruptcy Court under the First Day Orders, such payments have been included in the MOR.

 

  7.

Reservation of Rights. The Debtors reserve all rights to amend or supplement the MOR in all respects, as may be necessary or appropriate. Nothing contained in this MOR shall constitute a waiver of any of the Debtors’ rights or an admission with respect to their chapter 11 cases.

 

  8.

Specific MOR Disclosures.

 

  a.

Notes to MOR-1a: Cash receipts related to intercompany transfers among the Debtors and their non-Debtor affiliates are deducted from total cash receipts. Cash receipts are from October 1, 2020 through October 31, 2020.

 

  b.

Notes to MOR-1b: Cash disbursements related to intercompany transfers among the Debtors and their non-debtor affiliates are deducted from total cash disbursements. Cash disbursements are from October 1, 2020 through October 31, 2020 and are presented on the entity for whose benefit the amounts were paid.

 

  c.

Notes to MOR-1c: All amounts listed are bank balances as of the end of the month.

 

  d.

Notes to MOR-4a: For status of post-petition tax payments, see disclosures as noted on MOR-4a. Due to the size and detail of such records, (i) copies of IRS Form 6123 or payment receipts; (ii) copies of tax returns filed during the reporting period; and (iii) a taxes aging schedule will be made available upon reasonable request in writing to counsel for the Debtors.

 

3


  e.

Notes to MOR-4b: The Debtors maintain a detailed aging of post-petition trade accounts payable. The post-petition trade payable aging is as of October 26, 2020. The Debtors believe that the information as disclosed in MOR-4b appropriately summarizes the ending accounts payable balances of the Debtors. Currency exchange has created certain reconciling differences between subledger aging reports and consolidated financials. Due to the volume of transactions related to vendor payments, the accounts payable reconciliation is not presented by vendor.

 

  f.

Notes to MOR-5: The Debtors maintain an aging of trade accounts receivable which includes trade activity with affiliates. The Debtors believe that the information as disclosed in MOR-5 appropriately summarizes the ending accounts receivable of the Debtors. Detail of customer activity is not provided due to confidentiality.

 

  g.

Notes to MOR-6: The Debtors will pay retained professionals in accordance with the Order Pursuant to Sections 105(a) and 331 of the Bankruptcy Code, Bankruptcy Rule 2016 and Local Rule 2016-1 Establishing Procedures for Monthly Compensation and Reimbursement of Expenses of Professionals [D.I. 291]. The Debtors did not disburse funds to any retained professionals during the reporting period. No fee applications were filed during the reporting period. The Debtors paid amounts to professionals to the extent required under the DIP Order. These payments are excluded from the MOR.

 

4


In re Garrett Motion Inc., et al.,    Case No:    20-12212 (Jointly Administered)
Debtors    Reporting Period:    October 2020
   Fed. Tax I.D No.:    82-4873189

General: This MOR includes activity from the following Debtors and related case numbers

 

Entity Name

   Case Number
GARRETT ASASCO INC.    20-12211 (MEW)
GARRETT MOTION INC.    20-12212 (MEW)
BRH LLC    20-12213 (MEW)
CALVARI LIMITED    20-12214 (MEW)
FRICTION MATERIALS LLC    20-12215 (MEW)
GARRETT BORROWING LLC    20-12216 (MEW)
GARRETT HOLDING COMPANY S.A.R.L.    20-12217 (MEW)
GARRETT LX I S.A.R.L.    20-12218 (MEW)
GARRETT LX II S.A.R.L.    20-12219 (MEW)
GARRETT LX III S.A.R.L.    20-12220 (MEW)
GARRETT MOTION AUSTRALIA PTY LIMITED    20-12221 (MEW)
GARRETT MOTION AUTOMOTIVE RESEARCH MEXICO    20-12222 (MEW)
GARRETT MOTION HOLDINGS INC.    20-12223 (MEW)
GARRETT MOTION HOLDINGS II INC.    20-12224 (MEW)
GARRETT MOTION INTERNATIONAL S    20-12225 (MEW)
GARRETT MOTION IRELAND A LIMITED    20-12226 (MEW)
GARRETT MOTION IRELAND B LIMITED    20-12227 (MEW)
GARRETT MOTION IRELAND C LIMITED    20-12228 (MEW)
GARRETT MOTION IRELAND LIMITED    20-12229 (MEW)
GARRETT MOTION ITALIA S.R.L.    20-12230 (MEW)
GARRETT MOTION JAPAN INC.    20-12231 (MEW)
GARRETT MOTION LLC    20-12232 (MEW)
GARRETT MOTION MEXICO, SOCIEDAD    20-12233 (MEW)
GARRETT MOTION ROMANIA S.A.R.L.    20-12234 (MEW)
GARRETT MOTION SRL    20-12235 (MEW)
GARRETT MOTION SLOVAKIA S.R.O.    20-12236 (MEW)
GARRETT MOTION SWITZERLAND HOLDINGS SARL    20-12237 (MEW)
GARRETT MOTION UK A LIMITED    20-12238 (MEW)
GARRETT MOTION UK B LIMITED    20-12239 (MEW)
GARRETT MOTION UK C LIMITED    20-12240 (MEW)
GARRETT MOTION UK D LIMITED    20-12241 (MEW)
GARRETT MOTION UK LIMITED    20-12242 (MEW)
GARRETT TRANSPORTATION I INC.    20-12243 (MEW)
GARRETT TRANSPORTATION SYSTEMS UK LTD    20-12244 (MEW)
GARRETT TRANSPORTATION SYSTEMS UK II LTD    20-12245 (MEW)
GARRETT TS LTD    20-12246 (MEW)
GARRETT TURBO LTD    20-12247 (MEW)

 

5


In re Garrett Motion Inc., et al.,    Case No:    20-12212 (Jointly Administered)
Debtors    Reporting Period:    October 2020
   Fed. Tax I.D No.:    82-4873189

 

MOR-1a: Schedule of Cash Receipts

($USD Whole Dollars)

GARRETT MOTION & RELATED DEBTORS:

SCHEDULE OF CASH RECEIPTS (LESS INTERCOMPANY TRANSFERS)

 

Case Number

  

Debtor

  Total Receipts     Less Intercompany Transfers:
(Specify To Which Debtor or Non-
Debtor Funds are being Transferred)
    Net Receipts  

081-20-12211

  

GARRETT ASASCO INC.

  $ —       $ —       $ —    

081-20-12212

  

GARRETT MOTION INC.

  $ —       $ —       $ —    

081-20-12213

  

BRH LLC

  $ —       $ —       $ —    

081-20-12214

  

CALVARI LIMITED

  $ —       $ —       $ —    

081-20-12215

  

FRICTION MATERIALS LLC

  $ —       $ —       $ —    

081-20-12216

  

GARRETT BORROWING LLC

  $ —       $ —       $ —    

081-20-12217

  

GARRETT HOLDING COMPANY S.A.R.L.

  $ —       $ —       $ —    

081-20-12218

  

GARRETT LX I S.A.R.L.

  $ —       $ —       $ —    

081-20-12219

  

GARRETT LX II S.A.R.L.

  $ —       $ —       $ —    

081-20-12220

  

GARRETT LX III S.A.R.L.

  $ —       $ —       $ —    

081-20-12221

  

GARRETT MOTION AUSTRALIA PTY LIMITED

  $ 975,406     $ —       $ 975,406  

081-20-12222

  

GARRETT MOTION AUTOMOTIVE RESEARCH MEXICO

  $ —       $ —       $ —    

081-20-12223

  

GARRETT MOTION HOLDINGS INC.

  $ —       $ —       $ —    

081-20-12224

  

GARRETT MOTION HOLDINGS II INC.

  $ —       $ —       $ —    

081-20-12225

  

GARRETT MOTION INTERNATIONAL S

  $ —       $ —       $ —    

081-20-12226

  

GARRETT MOTION IRELAND A LIMITED

  $ —       $ —       $ —    

081-20-12227

  

GARRETT MOTION IRELAND B LIMITED

  $ —       $ —       $ —    

081-20-12228

  

GARRETT MOTION IRELAND C LIMITED

  $ —       $ —       $ —    

081-20-12229

  

GARRETT MOTION IRELAND LIMITED

  $ 1,772,322     $ 1,772,322     $ —    

081-20-12230

  

GARRETT MOTION ITALIA S.R.L.

  $ —       $ —       $ —    

081-20-12231

  

GARRETT MOTION JAPAN INC.

  $ 15,125,784     $ 310,392     $ 14,815,392  

081-20-12232

  

GARRETT MOTION LLC

  $ —       $ —       $ —    

081-20-12233

  

GARRETT MOTION MEXICO, SOCIEDAD

  $ —       $ —       $ —    

081-20-12234

  

GARRETT MOTION ROMANIA S.A.R.L.

  $ —       $ —       $ —    

081-20-12235

  

GARRETT MOTION SRL

  $ 111,387,432     $ —       $ 111,387,432  

081-20-12236

  

GARRETT MOTION SLOVAKIA S.R.O.

  $ —       $ —       $ —    

081-20-12237

  

GARRETT MOTION SWITZERLAND HOLDINGS SARL

  $ —       $ —       $ —    

081-20-12238

  

GARRETT MOTION UK A LIMITED

  $ —       $ —       $ —    

081-20-12239

  

GARRETT MOTION UK B LIMITED

  $ —       $ —       $ —    

081-20-12240

  

GARRETT MOTION UK C LIMITED

  $ —       $ —       $ —    

081-20-12241

  

GARRETT MOTION UK D LIMITED

  $ —       $ —       $ —    

081-20-12242

  

GARRETT MOTION UK LIMITED

  $ —       $ —       $ —    

081-20-12243

  

GARRETT TRANSPORTATION I INC.

  $ 44,172,956     $ 6,543     $ 44,166,412  

081-20-12244

  

GARRETT TRANSPORTATION SYSTEMS UK LTD

  $ —       $ —       $ —    

081-20-12245

  

GARRETT TRANSPORTATION SYSTEMS UK II LTD

  $ —       $ —       $ —    

081-20-12246

  

GARRETT TS LTD

  $ —       $ —       $ —    

081-20-12247

  

GARRETT TURBO LTD

  $ —       $ —       $ —    
    

 

 

   

 

 

   

 

 

 
  

GRAND TOTALS:

  $ 173,433,899     $ 2,089,257     $ 171,344,642  
    

 

 

   

 

 

   

 

 

 

 

6


In re Garrett Motion Inc., et al.,    Case No:    20-12212 (Jointly Administered)
Debtors    Reporting Period:    October 2020
   Fed. Tax I.D No.:    82-4873189

 

MOR-1b: Schedule of Cash Disbursements

($USD Whole Dollars)

GARRETT MOTION & RELATED DEBTORS:

SCHEDULE OF CASH DISBURSEMENTS (LESS INTERCOMPANY TRANSFERS)

 

Case Number

  

Debtor

  Disbursements:     Less Intercompany Transfers:
(Specify To Which Debtor or Non-
Debtor Funds are being Transferred)
    Total
Disbursements
(for quarterly
fee purposes):
 
081-20-12211   

GARRETT ASASCO INC.

  $ —       $ —       $ —    
081-20-12212   

GARRETT MOTION INC.

  $ 641,445     $ —       $ 641,445  
081-20-12213   

BRH LLC

  $ —       $ —       $ —    
081-20-12214   

CALVARI LIMITED

  $ —       $ —       $ —    
081-20-12215   

FRICTION MATERIALS LLC

  $ —       $ —       $ —    
081-20-12216   

GARRETT BORROWING LLC

  $ —       $ —       $ —    
081-20-12217   

GARRETT HOLDING COMPANY S.A.R.L.

  $ —       $ —       $ —    
081-20-12218   

GARRETT LX I S.A.R.L.

  $ —       $ —       $ —    
081-20-12219   

GARRETT LX II S.A.R.L.

  $ —       $ —       $ —    
081-20-12220   

GARRETT LX III S.A.R.L.

  $ 2,835,099     $ —       $ 2,835,099  
081-20-12221   

GARRETT MOTION AUSTRALIA PTY LIMITED

  $ 732,742     $ 79,528     $ 653,213  
081-20-12222   

GARRETT MOTION AUTOMOTIVE RESEARCH MEXICO

  $ 220,813     $ —       $ 220,813  
081-20-12223   

GARRETT MOTION HOLDINGS INC.

  $ —       $ —       $ —    
081-20-12224   

GARRETT MOTION HOLDINGS II INC.

  $ —       $ —       $ —    
081-20-12225   

GARRETT MOTION INTERNATIONAL S

  $ 1,788,038     $ 17,336     $ 1,770,702  
081-20-12226   

GARRETT MOTION IRELAND A LIMITED

  $ —       $ —       $ —    
081-20-12227   

GARRETT MOTION IRELAND B LIMITED

  $ —       $ —       $ —    
081-20-12228   

GARRETT MOTION IRELAND C LIMITED

  $ —       $ —       $ —    
081-20-12229   

GARRETT MOTION IRELAND LIMITED

  $ 4,784,323     $ —       $ 4,784,323  
081-20-12230   

GARRETT MOTION ITALIA S.R.L.

  $ 136,476     $ —       $ 136,476  
081-20-12231   

GARRETT MOTION JAPAN INC.

  $ 8,895,574     $ 2,209,864     $ 6,685,710  
081-20-12232   

GARRETT MOTION LLC

  $ —       $ —       $ —    
081-20-12233   

GARRETT MOTION MEXICO, SOCIEDAD

  $ 4,600,403     $ —       $ 4,600,403  
081-20-12234   

GARRETT MOTION ROMANIA S.A.R.L.

  $ 4,570,154     $ —       $ 4,570,154  
081-20-12235   

GARRETT MOTION SRL

  $ 181,360,543     $ 10,057,763     $ 171,302,780  
081-20-12236   

GARRETT MOTION SLOVAKIA S.R.O.

  $ 2,133,861     $ —       $ 2,133,861  
081-20-12237   

GARRETT MOTION SWITZERLAND HOLDINGS SARL

  $ —       $ —       $ —    
081-20-12238   

GARRETT MOTION UK A LIMITED

  $ —       $ —       $ —    
081-20-12239   

GARRETT MOTION UK B LIMITED

  $ —       $ —       $ —    
081-20-12240   

GARRETT MOTION UK C LIMITED

  $ —       $ —       $ —    
081-20-12241   

GARRETT MOTION UK D LIMITED

  $ —       $ —       $ —    
081-20-12242   

GARRETT MOTION UK LIMITED

  $ 158,948     $ 794     $ 158,154  
081-20-12243   

GARRETT TRANSPORTATION I INC.

  $ 7,372,867     $ 6     $ 7,372,861  
081-20-12244   

GARRETT TRANSPORTATION SYSTEMS UK LTD

  $ —       $ —       $ —    
081-20-12245   

GARRETT TRANSPORTATION SYSTEMS UK II LTD

  $ —       $ —       $ —    
081-20-12246   

GARRETT TS LTD

  $ —       $ —       $ —    
081-20-12247   

GARRETT TURBO LTD

  $ —       $ —       $ —    
    

 

 

   

 

 

   

 

 

 
  

GRAND TOTALS:

  $ 220,231,285     $ 12,365,292     $ 207,865,994  
    

 

 

   

 

 

   

 

 

 

 

7


In re Garrett Motion Inc., et al.,    Case No:    20-12212 (Jointly Administered)
Debtors    Reporting Period:    October 2020
   Fed. Tax I.D No.:    82-4873189

 

MOR-1c: Bank Account Information

 

    #    

   Account#
(Last 4 Digits)
  

Debtor

  

Bank

       Balance as of    
Oct 31, 2020
 
1    2684   

Garrett Motion Mexico S.A. de C.V

  

Banco Bilbao Vizcaya Argentaria S.A.

   $ 613,460  
2    7183   

Garrett Motion Sarl

  

Banque Cantonale Vaudoise

   $ 0  
3    7184   

Garrett Motion Sarl

  

Banque Cantonale Vaudoise

   $ 0  
4    7182   

Garrett Motion Sarl

  

Banque Cantonale Vaudoise

   $ 0  
5    5215   

Garrett Motion UK Limited

  

Barclays Bank PLC

   $ 349,885  
6    5818   

Garrett Motion UK Limited

  

Barclays Bank PLC

   $ 0  
7    0019   

Garrett Motion UK Limited

  

Barclays Bank PLC

   $ 0  
8    2001   

Garrett Motion Sarl

  

Basellandschaftliche Kantonalbank

   $ 527  
9    2004   

Garrett Motion Sarl

  

BNP Paribas SA

   $ 618,914  
10    2006   

Garrett Motion Sarl

  

BNP Paribas SA

   $ 452,357  
11    2001   

Garrett Motion Sarl

  

BNP Paribas SA

   $ 1,051,505  
12    2002   

Garrett Motion Sarl

  

BNP Paribas SA

   $ 54,028  
13    9001   

Garrett Motion Sarl

  

BNP Paribas SA

   $ 0  
14    2005   

Garrett Motion Sarl

  

BNP Paribas SA

   $ 3,351,089  
15    2007   

Garrett Motion Sarl

  

BNP Paribas SA

   $ 571  
16    1289   

Garrett Motion Italia S.r.l.

  

BNP Paribas SA

   $ 583,601  
17    0173   

Garrett Motion International Services S.r.l

  

BNP Paribas SA

   $ 14,115  
18    1001EUR   

Garrett Motion International Services S.r.l

  

BNP Paribas SA

   $ 233,440  
19    1001RON   

Garrett Motion International Services S.r.l

  

BNP Paribas SA

   $ 1,198,207  
20    1002   

Garrett Motion International Services S.r.l

  

BNP Paribas SA

   $ 1,198,207  
21    0001EUR   

Garrett Motion Romania S.r.l.

  

BNP Paribas SA

   $ 1,167,202  
22    0004   

Garrett Motion Romania S.r.l.

  

BNP Paribas SA

   $ 0  
23    0001RON   

Garrett Motion Romania S.r.l.

  

BNP Paribas SA

   $ 718,924  
24    0002   

Garrett Motion Romania S.r.l.

  

BNP Paribas SA

   $ 2,396,415  
25    5388   

Garrett Motion Sarl

  

Citibank N.A.

   $ 41,557,462  
26    7010   

Garrett Motion Sarl

  

Citibank N.A.

   $ 53,571,236  
27    8025   

Garrett Motion Ireland A Limited

  

Citibank N.A.

   $ 11,672  
28    9048   

Garrett Motion Ireland Limited

  

Citibank N.A.

   $ 2,918,004  
29    2008   

Garrett Motion Automotive Research Mexico S. de R.L. de C.V

   Citibank N.A.    $ 86,411  
30    5837   

Garrett Motion Mexico S.A. de C.V

  

Citibank N.A.

   $ 269  
31    9008   

Garrett Motion Mexico S.A. de C.V

  

Citibank N.A.

   $ 37,422  
32    4445   

Garrett Motion Mexico S.A. de C.V

  

Citibank N.A.

   $ 512,365  
33    0001   

Garrett Motion Slovakia s.r.o.

  

Citibank N.A.

   $ 2,918,004  
34    0108   

Garrett Motion Slovakia s.r.o.

  

Citibank N.A.

   $ 583,601  
35    2629   

Garrett Motion International Services S.r.l

  

Citibank N.A.

   $ 8,267  
36    8719   

Garrett Motion Sarl

  

Deutsche Bank AG

   $ 0  
37    8775   

Garrett Motion Sarl

  

Deutsche Bank AG

   $ 2,073,967  
38    8737   

Garrett Motion Sarl

  

Deutsche Bank AG

   $ 1,011,916  
39    32500   

Garrett Motion Japan, Inc.

  

Deutsche Bank AG

   $ 232,614  
40    30000   

Garrett Motion Japan, Inc.

  

Deutsche Bank AG

   $ 1,388,961  
41    9945   

Garrett Motion Australia Pty Limited

  

JP Morgan Chase Bank N.A.

   $ 1,398,179  
42    2161   

Garrett Motion Sarl

  

JP Morgan Chase Bank N.A.

   $ 3,354,382  
43    2180   

Garrett Motion Sarl

  

JP Morgan Chase Bank N.A.

   $ 662,449  
44    2176   

Garrett Motion Sarl

  

JP Morgan Chase Bank N.A.

   $ 178,433  
45    2177   

Garrett Motion Sarl

  

JP Morgan Chase Bank N.A.

   $ 5,943,312  

 

8


    #    

   Account#
(Last 4 Digits)
  

Debtor

  

Bank

       Balance as of    
Oct 31, 2020
 
46    2178   

Garrett Motion Sarl

  

JP Morgan Chase Bank N.A.

   $ 23,197,759  
47    2181   

Garrett Motion Sarl

  

JP Morgan Chase Bank N.A.

   $ 7,776,111  
48    5385   

Garrett Motion Sarl

  

JP Morgan Chase Bank N.A.

   $ 6,138  
49    2183   

Garrett Motion Sarl

  

JP Morgan Chase Bank N.A.

   $ 4,659,201  
50    2184   

Garrett Motion Sarl

  

JP Morgan Chase Bank N.A.

   $ 285,510  
51    2179   

Garrett Motion Sarl

  

JP Morgan Chase Bank N.A.

   $ 1,923,326  
52    2182   

Garrett Motion Sarl

  

JP Morgan Chase Bank N.A.

   $ 96,817,388  
53    2374   

Garrett TS Ltd

  

JP Morgan Chase Bank N.A.

   $ 5,566  
54    6324   

Garrett Transportation Systems Ltd

  

JP Morgan Chase Bank N.A.

   $ 6,457  
55    2658   

Garrett Motion Ireland B Limited

  

JP Morgan Chase Bank N.A.

   $ 5,596  
56    9470   

Garrett Motion Japan, Inc.

  

JP Morgan Chase Bank N.A.

   $ 20,903,933  
57    1878   

Garrett LX I S.a.r.l.

  

JP Morgan Chase Bank N.A.

   $ 11,387  
58    0975   

Garrett LX I S.a.r.l.

  

JP Morgan Chase Bank N.A.

   $ 10,967  
59    1879   

Garrett LX II S.a.r.l.

  

JP Morgan Chase Bank N.A.

   $ 11,389  
60    1880   

Garrett LX III S.a.r.l.

  

JP Morgan Chase Bank N.A.

   $ 11,383  
61    2372   

Garrett LX III S.a.r.l.

  

JP Morgan Chase Bank N.A.

   $ 9,813  
62    6604   

Garrett Motion Mexico S.A. de C.V

  

JP Morgan Chase Bank N.A.

   $ 0  
63    2487   

Garrett ASASCO Inc

  

JP Morgan Chase Bank N.A.

   $ 48,612  
64    6395   

Garrett ASASCO Inc

  

JP Morgan Chase Bank N.A.

   $ 678,399  
65    0270   

Friction Materials LLC

  

JP Morgan Chase Bank N.A.

   $ 14,338  
66    2476   

Garrett Transportation I Inc.

  

JP Morgan Chase Bank N.A.

   $ 1,826,783  
67    9557   

Garrett Transportation I Inc.

  

JP Morgan Chase Bank N.A.

   $ 32,131,779  
68    7182   

Garrett Transportation I Inc.

  

JP Morgan Chase Bank N.A.

   $ 1,898,423  
69    8578   

Garrett Motion Inc.

  

JP Morgan Chase Bank N.A.

   $ 98,156,875  
70    10000   

Garrett Motion Japan, Inc.

  

Mitsubishi UFJ, LTD

   $ 3,298,060  
71    7001   

Garrett Motion Sarl

  

Société Générale S.A

   $ 0  
72    7271   

Garrett Motion Japan, Inc.

  

Sumitomo Mitsui Banking Corporation

   $ 308,839  
73    0539   

Garrett Motion International Services S.r.l

  

Türk Ekonomi Bankası

   $ 101  
74    9341   

Garrett Motion International Services S.r.l

  

Türk Ekonomi Bankası

   $ 29,214  
75    0492   

Garrett Motion International Services S.r.l

  

Türk Ekonomi Bankası

   $ 0  
76    201R   

Garrett Holding Company Sarl

  

UBS AG

   $ 19,172  
77    000Z   

Garrett Motion Sarl

  

UBS AG

   $ 22,498  
78    7MOM   

Garrett Motion Sarl

  

UBS AG

   $ 9,963  
79    902W   

Garrett Motion Sarl

  

UBS AG

   $ 60,829  
80    9AUT   

Garrett Motion Sarl

  

UBS AG

   $ 11,011  
81    9AZB   

Garrett Motion Sarl

  

UBS AG

   $ 34,223  
82    9CBH   

Garrett Motion Sarl

  

UBS AG

   $ 11,793  
83    961Y   

Garrett Motion Sarl

  

UBS AG

   $ 72  
84    962B   

Garrett Motion Sarl

  

UBS AG

   $ 17,831  
85    460G   

Garrett Motion Switzerland Holdings Sarl

  

UBS AG

   $ 11,379  
86    2438   

Garrett Motion Sarl

  

Unicredit Bank AG

   $ 165,379  
87    0245   

Garrett Motion Sarl

  

Unicredit Bank AG

   $ 194,933  
88    2678   

Garrett Motion Sarl

  

Unicredit Bank AG

   $ 46,034  

 

9


In re Garrett Motion Inc., et al.,    Case No:    20-12212 (Jointly Administered)
Debtors    Reporting Period:    October 2020
   Fed. Tax I.D No.:    82-4873189

 

MOR 2: Statement of Operations – Year To Date Ended October 26, 2020

 

(Thousands of U.S. Dollars)       
     Consolidated
Debtor Amounts

- YTD October
 

Net Sales

   $ 1,756,229  

Cost of goods sold

     1,450,728  
  

 

 

 

Gross Profit

     305,501  

Selling, general & administrative expenses

     200,775  
  

 

 

 

Operating profit (loss)

     104,726  

Other (income)/expense

     44,786  
  

 

 

 

Earnings Before Interest & Taxes

     59,940  

Interest expense

     64,205  

Non-operating (income)/expense

     -132,411  

Reorganization items - net

     37,513  
  

 

 

 

Income before taxes

     90,633  

Tax Expense

     -12,516  
  

 

 

 

Net Income (Loss)

   $ 103,149  
  

 

 

 

 

10


In re Garrett Motion Inc., et al.,    Case No:    20-12212 (Jointly Administered)
Debtors    Reporting Period:    October 2020
   Fed. Tax I.D No.:    82-4873189

 

MOR 3 – Consolidated Debtor Balance Sheet as of October 26, 2020

 

(Thousands of U.S. Dollars)       
     Book
Value -
Year to
Date
October
 

Cash and cash equivalents

   $ 298,880  

Accounts, notes and other receivables - net

     482,447  

Inventories- net

     165,108  

Other current Assets

     87,694  
  

 

 

 

Total current assets

     1,034,129  

Investments and long-term receivables

     11,268  

Property, plant and equipment- net

     308,554  

Deferred income taxes assets

     234,412  

Goodwill

     196,978  

Other long-term assets

     95,593  
  

 

 

 

Total Assets

   $ 1,880,934  
  

 

 

 

Accounts payable

   $ 463,689  

Borrowings under revolving credit facility

     370,000  

Debtor-in-possession Term Loan

     100,000  

Obligations payable to Honeywell, current

     40,736  

Accrued liabilities

     496,975  
  

 

 

 

Total current liabilities

     1,471,400  

Long-term debt

     1,471,580  

Deferred income taxes

     18,655  

Obligations payable to Honeywell

     1,389,336  

Other liabilities

     202,362  
  

 

 

 

Total liabilities

     4,553,333  

Additional paid-in capital

     0  

Invested Equity

     -2,739,270  

Other Comprehensive Income (Loss)

     66,871  
  

 

 

 

Total Shareholders’ Equity

     -2,672,399  
  

 

 

 

Total Liabilities & Equity

   $ 1,880,934  
  

 

 

 

 

11


In re Garrett Motion Inc., et al.,    Case No:    20-12212 (Jointly Administered)
Debtors    Reporting Period:    October 2020
   Fed. Tax I.D No.:    82-4873189

 

MOR-4a: Status of Post-Petition Taxes

Office of the United States Trustee

Subject: October Monthly Operating Report Attestation Regarding Post-petition Taxes

The Debtor, Garrett Motion Inc. and its affiliated Debtors, hereby submit this attestation regarding post-petition taxes.

All post-petition taxes for the Debtors, which are not subject to dispute or reconciliation, are current. There are no material tax disputes or reconciliations.

 

        /s/ Sean Deason

Sean Deason

Chief Financial Officer

 

12


In re Garrett Motion Inc., et al.,    Case No:    20-12212 (Jointly Administered)
Debtors    Reporting Period:    October 2020
   Fed. Tax I.D No.:    82-4873189

 

MOR-4b: Post-Petition Accounts Payable Aging

October 26, 2020

(Thousands of U.S. Dollars)

 

Accounts Payable Aging

   Current      0-30 Days      31-60 Days      60-90 Days      90+ Days      Total  

Post Petition Trade Payables

   $ 47,097,364      $ 0      $ 0      $ 0      $ 0      $ 47,097,364  

 

13


In re Garrett Motion Inc., et al.,    Case No:    20-12212 (Jointly Administered)
Debtors    Reporting Period:    October 2020
   Fed. Tax I.D No.:    82-4873189

 

MOR-5 – Accounts Receivable Aging

As of October 26, 2020

(Thousands of U.S. Dollars)

 

Accounts Receivable Aging

   Current      1-30 Days      31-60 Days      61-90 Days      91+ Days      Total  

Net Accounts Receivable

   $ 403,453      $ 5,079      $ 429      $ 1,229      $ 905      $ 411,095  

 

14


In re Garrett Motion Inc., et al.,    Case No:    20-12212 (Jointly Administered)
Debtors    Reporting Period:    October 2020
   Fed. Tax I.D No.:    82-4873189

 

MOR-6 – Payments to Professionals

None

 

15


In re Garrett Motion Inc., et al.,    Case No:    20-12212 (Jointly Administered)
Debtors    Reporting Period:    October 2020
   Fed. Tax I.D No.:    82-4873189

 

MOR-7: Debtor Questionnaire

 

      

  

Must be completed each month. If the answer to any of the questions is “Yes”, provide a detailed
explanation of each item. Attach additional sheets if necessary.

   Yes    No   

Comments

1    Have any assets been sold or transferred outside the normal course of business this reporting period?       X   
2    Have any funds been disbursed from any account other than a debtor in possession account this reporting period?       X   
3    Is the Debtor delinquent in the timely filing of any post-petition tax returns?       X   
4    Are workers compensation, general liability or other necessary insurance coverages expired or cancelled, or has the debtor received notice of expiration or cancellation of such policies?       X   
5    Is the Debtor delinquent in paying any insurance premium payment?       X   
6    Have any payments been made on pre-petition liabilities this reporting period?    X       To the extent authorized by the First Day Orders
7    Are any post-petition receivables (accounts, notes or loans) due from related parties?    X      
8    Are any post-petition payroll taxes past due?       X   
9    Are any post-petition State or Federal income taxes past due?       X   
10    Are any post-petition real estate taxes past due?       X   
11    Are any other post-petition taxes past due?       X   
12    Have any pre-petition taxes been paid during this reporting period?    X       To the extent authorized by the First Day Orders
13    Are any amounts owed to post-petition creditors delinquent?       X   
14    Are any wage payments past due?       X   
15    Have any post-petition loans been received by the Debtor from any party?       X   
16    Is the Debtor delinquent in paying any U.S. Trustee fees?       X   
17    Is the Debtor delinquent with any court ordered payments to attorneys or other professionals?       X   
18    Have the owners or shareholders received any compensation outside of the normal course of business?       X   

 

16