8-K
false 0001735707 0001735707 2021-02-22 2021-02-22

 

 

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): February 22, 2021

 

 

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, Garrett Motion Inc. (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 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 February 22, 2021, the Debtors jointly filed a monthly operating report for the period from January 1, 2021, to January 31, 2021 (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, 2020, 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 January 1, 2021, to January 31, 2021, 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: February 22, 2021     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:        January 2021
   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

     February 22, 2021
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 December 31, 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.

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 January 1, 2021 through January 31, 2021.

 

  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 January 1, 2021 through January 31, 2021 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-2 and MOR-3: Preliminary unaudited financial statements subject to change, in particular the accounts do not include final tax entries, pension entries, or reclassification of Liabilities Subject to Compromise and are still subject to final management review and audit.

 

3


  e.

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.

 

  f.

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 January 31, 2021.    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.

 

  g.

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.

 

  h.

Notes to MOR-6: The Debtors paid 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 also paid amounts to professionals to the extent required under the DIP Order, which payments are excluded from the MOR.

 

4


In re Garrett Motion Inc., et al.,    Case No:    20-12212 (Jointly Administered)
Debtors    Reporting Period:    January 2021
   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:

  

January 2021

  

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

   $ —        $ —        $ —    
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

   $ —        $ —        $ —    
081-20-12230   

GARRETT MOTION ITALIA S.R.L.

   $ —        $ —        $ —    
081-20-12231   

GARRETT MOTION JAPAN INC.

   $ 26,567,052      $ 11,148,468      $ 15,418,584  
081-20-12232   

GARRETT MOTION LLC

   $ —        $ —        $ —    
081-20-12233   

GARRETT MOTION MEXICO, SOCIEDAD

   $ 2,237,073      $ 2,237,073      $ —    
081-20-12234   

GARRETT MOTION ROMANIA S.A.R.L.

   $ —        $ —        $ —    
081-20-12235   

GARRETT MOTION SRL

   $ 186,467,174      $ 14,333,493      $ 172,133,682  
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.

   $ 51,459,865      $ 121,316      $ 51,338,549  
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:

   $ 266,731,164      $ 27,840,349      $ 238,890,815  
     

 

 

    

 

 

    

 

 

 

 

6


In re Garrett Motion Inc., et al.,

  

Case No:

  

20-12212 (Jointly Administered)

Debtors

  

Reporting Period:

  

January 2021

  

Fed. Tax I.D No.:

  

82-4873189

MOR-1b: Schedule of Cash Disbursements

($USD Whole Dollars)

ION & RELATED DEBTORS:

SH DISBURSEMENTS (LESS INTERCOMPANY TRANSFERS)

 

Debtor

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

GARRETT ASASCO INC.

   $ —        $ —        $ —    

GARRETT MOTION INC.

   $ 7,311,422      $ —        $ 7,311,422  

BRH LLC

   $ —        $ —        $ —    

CALVARI LIMITED

   $ —        $ —        $ —    

FRICTION MATERIALS LLC

   $ —        $ —        $ —    

GARRETT BORROWING LLC

   $ —        $ —        $ —    

GARRETT HOLDING COMPANY S.A.R.L.

   $ —        $ —        $ —    

GARRETT LX I S.A.R.L.

   $ —        $ —        $ —    

GARRETT LX II S.A.R.L.

   $ —        $ —        $ —    

GARRETT LX III S.A.R.L.

   $ 3,032,749      $ —        $ 3,032,749  

GARRETT MOTION AUSTRALIA PTY LIMITED

   $ 619,137      $ —        $ 619,137  

GARRETT MOTION AUTOMOTIVE RESEARCH MEXICO

   $ 244,491      $ —        $ 244,491  

GARRETT MOTION HOLDINGS INC.

   $ —        $ —        $ —    

GARRETT MOTION HOLDINGS II INC.

   $ —        $ —        $ —    

GARRETT MOTION INTERNATIONAL S

   $ 1,097,576      $ —        $ 1,097,576  

GARRETT MOTION IRELAND A LIMITED

   $ —        $ —        $ —    

GARRETT MOTION IRELAND B LIMITED

   $ —        $ —        $ —    

GARRETT MOTION IRELAND C LIMITED

   $ —        $ —        $ —    

GARRETT MOTION IRELAND LIMITED

   $ 6,543,724      $ —        $ 6,543,724  

GARRETT MOTION ITALIA S.R.L.

   $ 698,705      $ —        $ 698,705  

GARRETT MOTION JAPAN INC.

   $ 25,693,076      $ 18,047,305      $ 7,645,771  

GARRETT MOTION LLC

   $ —        $ —        $ —    

GARRETT MOTION MEXICO, SOCIEDAD

   $ 3,955,907      $ —        $ 3,955,907  

GARRETT MOTION ROMANIA S.A.R.L.

   $ 5,380,006      $ —        $ 5,380,006  

GARRETT MOTION SRL

   $ 159,856,410      $ 12,787,809      $ 147,068,601  

GARRETT MOTION SLOVAKIA S.R.O.

   $ 6,081,586      $ —        $ 6,081,586  

GARRETT MOTION SWITZERLAND HOLDINGS SARL

   $ —        $ —        $ —    

GARRETT MOTION UK A LIMITED

   $ —        $ —        $ —    

GARRETT MOTION UK B LIMITED

   $ —        $ —        $ —    

GARRETT MOTION UK C LIMITED

   $ —        $ —        $ —    

GARRETT MOTION UK D LIMITED

   $ —        $ —        $ —    

GARRETT MOTION UK LIMITED

   $ 1,412,873      $ —        $ 1,412,873  

GARRETT TRANSPORTATION I INC.

   $ 87,101,159      $ —        $ 87,101,159  

GARRETT TRANSPORTATION SYSTEMS UK LTD

   $ —        $ —        $ —    

GARRETT TRANSPORTATION SYSTEMS UK II LTD

   $ —        $ —        $ —    

GARRETT TS LTD

   $ —        $ —        $ —    

GARRETT TURBO LTD

   $ —        $ —        $ —    
  

 

 

    

 

 

    

 

 

 

GRAND TOTALS:

   $ 309,028,822      $ 30,835,113      $ 278,193,709  
  

 

 

    

 

 

    

 

 

 

 

7


In re Garrett Motion Inc., et al.,

  

Case No:

  

20-12212 (Jointly Administered)

Debtors

  

Reporting Period:

  

January 2021

  

Fed. Tax I.D No.:

  

82-4873189

MOR-1c: Bank Account Information

 

    #    

   Account #
(Last 4
Digits)
  

Debtor

  

Bank

   Balance as of
Jan 31, 2021
 

1

   2684    Garrett Motion Mexico S.A. de C.V    Banco Bilbao Vizcaya Argentaria S.A.    $ 1,286,516  

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    $ 91,552  

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    $ 0  

9

   2004    Garrett Motion Sarl    BNP Paribas SA    $ 857,483  

10

   2006    Garrett Motion Sarl    BNP Paribas SA    $ 553,255  

11

   2001    Garrett Motion Sarl    BNP Paribas SA    $ 587,433  

12

   2002    Garrett Motion Sarl    BNP Paribas SA    $ 54,441  

13

   9001    Garrett Motion Sarl    BNP Paribas SA    $ 0  

14

   2005    Garrett Motion Sarl    BNP Paribas SA    $ 190,875  

15

   2007    Garrett Motion Sarl    BNP Paribas SA    $ 498  

16

   1289    Garrett Motion Italia S.r.l.    BNP Paribas SA    $ 604,902  

17

   0173    Garrett Motion International Services S.r.l    BNP Paribas SA    $ 13,018  

18

   1001EUR    Garrett Motion International Services S.r.l    BNP Paribas SA    $ 241,961  

19

   1001RON    Garrett Motion International Services S.r.l    BNP Paribas SA    $ 1,241,434  

20

   1002    Garrett Motion International Services S.r.l    BNP Paribas SA    $ 1,241,434  

21

   0001EUR    Garrett Motion Romania S.r.l.    BNP Paribas SA    $ 1,209,804  

22

   0004    Garrett Motion Romania S.r.l.    BNP Paribas SA    $ 0  

23

   0001RON    Garrett Motion Romania S.r.l.    BNP Paribas SA    $ 744,860  

24

   0002    Garrett Motion Romania S.r.l.    BNP Paribas SA    $ 2,482,868  

25

   5388    Garrett Motion Sarl    Citibank N.A.    -$ 56  

26

   7010    Garrett Motion Sarl    Citibank N.A.    $ 120,684,989  

27

   8025    Garrett Motion Ireland A Limited    Citibank N.A.    $ 12,098  

28

   9048    Garrett Motion Ireland Limited    Citibank N.A.    $ 3,024,511  

29

   2008    Garrett Motion Automotive Research Mexico S. de R.L. de C.V    Citibank N.A.    $ 287,295  

30

   5837    Garrett Motion Mexico S.A. de C.V    Citibank N.A.    $ 552  

31

   9008    Garrett Motion Mexico S.A. de C.V    Citibank N.A.    $ 1,245  

32

   4445    Garrett Motion Mexico S.A. de C.V    Citibank N.A.    $ 1,072,620  

33

   0001    Garrett Motion Slovakia s.r.o.    Citibank N.A.    $ 3,024,511  

34

   0108    Garrett Motion Slovakia s.r.o.    Citibank N.A.    $ 2,419,609  

35

   2629    Garrett Motion International Services S.r.l    Citibank N.A.    $ 17,862  

36

   8719    Garrett Motion Sarl    Deutsche Bank AG    $ 0  

37

   8775    Garrett Motion Sarl    Deutsche Bank AG    $ 1,504,673  

38

   8737    Garrett Motion Sarl    Deutsche Bank AG    $ 940,085  

39

   32500    Garrett Motion Japan, Inc.    Deutsche Bank AG    $ 130,749  

40

   30000    Garrett Motion Japan, Inc.    Deutsche Bank AG    $ 1,305,501  

41

   9945    Garrett Motion Australia Pty Limited    JP Morgan Chase Bank N.A.    $ 5,183,590  

42

   2161    Garrett Motion Sarl    JP Morgan Chase Bank N.A.    $ 45,974  

43

   2180    Garrett Motion Sarl    JP Morgan Chase Bank N.A.    $ 1,857,513  

44

   2176    Garrett Motion Sarl    JP Morgan Chase Bank N.A.    $ 52,743,208  

 

8


    #    

   Account #
(Last 4
Digits)
  

Debtor

  

Bank

   Balance as of
Jan 31, 2021
 

45

   2177   

Garrett Motion Sarl

  

JP Morgan Chase Bank N.A.

   $ 1,810,924  

46

   2178   

Garrett Motion Sarl

  

JP Morgan Chase Bank N.A.

   $ 46,370,129  

47

   2181   

Garrett Motion Sarl

  

JP Morgan Chase Bank N.A.

   $ 4,489,446  

48

   5385   

Garrett Motion Sarl

  

JP Morgan Chase Bank N.A.

   $ 6,223  

49

   2183   

Garrett Motion Sarl

  

JP Morgan Chase Bank N.A.

   $ 16,222,901  

50

   2184   

Garrett Motion Sarl

  

JP Morgan Chase Bank N.A.

   $ 344,752  

51

   2179   

Garrett Motion Sarl

  

JP Morgan Chase Bank N.A.

   $ 5,467,973  

52

   2182   

Garrett Motion Sarl

  

JP Morgan Chase Bank N.A.

   $ 27,958,014  

53

   2374   

Garrett TS Ltd

  

JP Morgan Chase Bank N.A.

   $ 513,327  

54

   6324   

Garrett Transportation Systems Ltd

  

JP Morgan Chase Bank N.A.

   $ 6,451  

55

   2658   

Garrett Motion Ireland B Limited

  

JP Morgan Chase Bank N.A.

   $ 5,610  

56

   9470   

Garrett Motion Japan, Inc.

  

JP Morgan Chase Bank N.A.

   $ 28,958,725  

57

   1878   

Garrett LX I S.a.r.l.

  

JP Morgan Chase Bank N.A.

   $ 20,773  

58

   0975   

Garrett LX I S.a.r.l.

  

JP Morgan Chase Bank N.A.

   $ 10,770  

59

   1879   

Garrett LX II S.a.r.l.

  

JP Morgan Chase Bank N.A.

   $ 11,058  

60

   1880   

Garrett LX III S.a.r.l.

  

JP Morgan Chase Bank N.A.

   $ 323,049  

61

   2372   

Garrett LX III S.a.r.l.

  

JP Morgan Chase Bank N.A.

   $ 321,046  

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.

   $ 50,140  

64

   6395   

Garrett ASASCO Inc

  

JP Morgan Chase Bank N.A.

   $ 532,640  

65

   0270   

Friction Materials LLC

  

JP Morgan Chase Bank N.A.

   $ 12,952  

66

   2476   

Garrett Transportation I Inc.

  

JP Morgan Chase Bank N.A.

   $ 21,943,196  

67

   9557   

Garrett Transportation I Inc.

  

JP Morgan Chase Bank N.A.

   $ 70,294,204  

68

   7182   

Garrett Transportation I Inc.

  

JP Morgan Chase Bank N.A.

   $ 2,853,488  

69

   8578   

Garrett Motion Inc.

  

JP Morgan Chase Bank N.A.

   $ 25,765,997  

70

   10000   

Garrett Motion Japan, Inc.

  

Mitsubishi UFJ, LTD

   $ 3,215,091  

71

   7001   

Garrett Motion Sarl

  

Société Générale S.A

   $ 0  

72

   7271   

Garrett Motion Japan, Inc.

  

Sumitomo Mitsui Banking Corporation

   $ 304,287  

73

   0539   

Garrett Motion International Services S.r.l

  

Türk Ekonomi Bankası

   $ 105  

74

   9341   

Garrett Motion International Services S.r.l

  

Türk Ekonomi Bankası

   $ 23,990  

75

   0492   

Garrett Motion International Services S.r.l

  

Türk Ekonomi Bankası

   $ 0  

76

   201R   

Garrett Holding Company Sarl

  

UBS AG

   $ 19,601  

77

   000Z   

Garrett Motion Sarl

  

UBS AG

   $ 69,728  

78

   7MOM   

Garrett Motion Sarl

  

UBS AG

   $ 10,116  

79

   902W   

Garrett Motion Sarl

  

UBS AG

   $ 23,574  

80

   9AUT   

Garrett Motion Sarl

  

UBS AG

   $ 11,180  

81

   9AZB   

Garrett Motion Sarl

  

UBS AG

   $ 34,749  

82

   9CBH   

Garrett Motion Sarl

  

UBS AG

   $ 0  

83

   961Y   

Garrett Motion Sarl

  

UBS AG

   $ 52  

84

   962B   

Garrett Motion Sarl

  

UBS AG

   $ 20,390  

85

   460G   

Garrett Motion Switzerland Holdings Sarl

  

UBS AG

   $ 17,526  

86

   2438   

Garrett Motion Sarl

  

Unicredit Bank AG

   $ 169,964  

87

   0245   

Garrett Motion Sarl

  

Unicredit Bank AG

   $ 194,907  

88

   2678   

Garrett Motion Sarl

  

Unicredit Bank AG

   $ 150,858  

 

9


In re Garrett Motion Inc., et al.,

  

Case No:

  

20-12212 (Jointly Administered)

Debtors

  

Reporting Period:

  

January 2021

  

Fed. Tax I.D No.:

  

82-4873189

MOR 2: Statement of Operations – Year To Date Ended January 31, 2021

(Thousands of U.S. Dollars)

 

     Consolidated
Debtor
Amounts -
YTD January
 

Net Sales

   $ 239,579  

Cost of goods sold

     196,060  
  

 

 

 

Gross Profit

     43,519  

Selling, general & administrative expenses

     97,525  
  

 

 

 

Operating profit (loss)

     -54,006  

Other (income)/expense

     145  
  

 

 

 

Earnings Before Interest & Taxes

     -54,151  

Interest expense

     7,598  

Non-operating (income)/expense

     8,236  

Reorganization items - net

     26,253  
  

 

 

 

Income before taxes

     -96,238  

Tax Expense

     2,080  
  

 

 

 

Net Income (Loss)

   -$ 98,318  
  

 

 

 

Note: Preliminary unaudited financial statements subject to change, in particular the accounts do not include final tax entries, pension entries, or reclassification of Liabilities Subject to Compromise and are still subject to final management review and audit.

 

10


In re Garrett Motion Inc., et al.,

  

Case No:

  

20-12212 (Jointly Administered)

Debtors

  

Reporting Period:

  

January 2021

  

Fed. Tax I.D No.:

  

82-4873189

MOR 3 – Consolidated Debtor Balance Sheet as of January 31, 2021

(Thousands of U.S. Dollars)

 

     Book Value -
Year to Date
January
 

Cash and cash equivalents

   $ 510,510  

Accounts, notes and other receivables - net

     412,663  

Inventories - net

     161,393  

Other current Assets

     87,124  
  

 

 

 

Total current assets

     1,171,690  

Investments and long-term receivables

     6,862  

Property, plant and equipment - net

     313,541  

Deferred income taxes assets

     231,628  

Goodwill

     192,785  

Other long-term assets

     92,165  
  

 

 

 

Total Assets

   $ 2,008,671  
  

 

 

 

Accounts payable

   $ 612,791  

Borrowings under revolving credit facility

     370,002  

Debtor-in-possession Term Loan

     200,000  

Obligations payable to Honeywell, current

     41,730  

Accrued liabilities

     477,280  
  

 

 

 

Total current liabilities

     1,701,803  

Long-term debt

     1,498,904  

Deferred income taxes

     25,309  

Obligations payable to Honeywell

     1,423,240  

Other liabilities

     202,381  
  

 

 

 

Total liabilities

     4,851,637  

Additional paid-in capital

     9,610  

Invested Equity

     -2,848,921  

Other Comprehensive Income (Loss)

     -3,655  
  

 

 

 

Total Shareholders’ Equity

     -2,842,966  
  

 

 

 

Total Liabilities & Equity

   $ 2,008,671  
  

 

 

 

 

11


In re Garrett Motion Inc., et al.,

  

Case No:

  

20-12212 (Jointly Administered)

Debtors

  

Reporting Period:

  

January 2021

  

Fed. Tax I.D No.:

  

82-4873189

MOR-4a: Status of Post-Petition Taxes

Office of the United States Trustee

Subject: January 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:

  

January 2021

  

Fed. Tax I.D No.:

  

82-4873189

MOR-4b: Post-Petition Accounts Payable Aging

January 31, 2021

(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

   $ 353,384,352      $ 12,770,882      $ 1,185,765      -$ 668,322        -$ 3,898,267        $ 362,774,411  

 

13


In re Garrett Motion Inc., et al.,

  

Case No:

  

20-12212 (Jointly Administered)

Debtors

  

Reporting Period:

  

January 2021

  

Fed. Tax I.D No.:

  

82-4873189

MOR-5 – Accounts Receivable Aging

As of January 31, 2021

(Thousands of U.S. Dollars)

 

Accounts Receivable

Aging

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

Net Accounts Receivable

   $ 331,544      $ 2,962      $ 635      —$ 70      $ 1,740      $ 336,811  

 

14


In re Garrett Motion Inc., et al.,

  

Case No:

  

20-12212 (Jointly Administered)

Debtors

  

Reporting Period:

  

January 2021

  

Fed. Tax I.D No.:

  

82-4873189

MOR-6 – Payments to Professionals

(Thousands of U.S. Dollars)

 

PROFESSIONALS

 

NAME

  

DATE OF COURT

ORDER AUTHORIZING

PAYMENT 1

   AMOUNT
APPROVED
     AMOUNT
PAID JAN
     TOTAL PAID
TO DATE 2
     TOTAL
INCURRED &
UNPAID3
 

Sullivan &Cromwell LLP

   See Note Below    $ 14,159      $ 3,009      $ 8,115      $ 6,044  

AlixPartners LLP

   See Note Below    $ 4,088      $ 0      $ 2,368      $ 1,720  

Perella Weinberg Partners

   See Note Below    $ 878      $ 271      $ 451      $ 427  

Kurtzman Carson Consultants

   See Note Below    $ 1,605      $ 121      $ 1,606      $ 0  

Quinn Emmanuel Urquhart & Sullivan LLP

   See Note Below    $ 7,656      $ 867      $ 1,346      $ 6,310  

White & Case LLP

   See Note Below    $ 4,192      $ 0      $ 2,519      $ 1,673  

Conway Mackenzie

   See Note Below    $ 901      $ 0      $ 446      $ 455  

FTI Consulting

   See Note Below    $ 629      $ 64      $ 451      $ 177  

Schulte Roth & Zabel LLP

   See Note Below    $ 343      $ 0      $ 250      $ 93  

Simpson Thacher & Bartlett LLP

   See Note Below    $ 851      $ 0      $ 429      $ 422  

Deloitte AG

   See Note Below    $ 1,357      $ 273      $ 544      $ 812  
     

 

 

    

 

 

    

 

 

    

 

 

 

TOTAL PAYMENTS TO PROFESSIONALS

   $ 36,659      $ 4,605      $ 18,525      $ 18,134  
     

 

 

    

 

 

    

 

 

    

 

 

 

 

1

INCLUDES FEE STATEMENTS APPROVED OR PENDING NOTICE PERIOD EXPIRATION AS OF 1/31/2021

2

INCLUDES RETAINER AMOUNTS APPLIED TO APPROVED FEE STATEMENTS

3

INCLUDES ALL FEES INCURRED, BOTH APPROVED AND PENDING NOTICE PERIOD EXPIRATION AS OF 1/31/2021

 

15


In re Garrett Motion Inc., et al.,

  

Case No:

  

20-12212 (Jointly Administered)

Debtors

  

Reporting Period:

  

January 2021

  

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