SCHEDULE 13D/A: Centerbridge Entities Divest 3 Million Shares of Garrett Motion Stock

Centerbridge Credit Partners Master and Centerbridge Special Credit Partners III-Flex have sold a combined 3 million shares of Garrett Motion Inc. common stock for approximately $30.9 million, significantly reducing their beneficial ownership.

Summary

• Centerbridge Credit Partners Master, L.P. and Centerbridge Special Credit Partners III-Flex, L.P., along with their affiliated entities, filed Amendment No. 6 to their Schedule 13D, disclosing recent transactions in Garrett Motion Inc. common stock.
• On May 29, 2025, Centerbridge Credit Partners Master sold 889,674 shares of Garrett Motion common stock at a price of $10.30 per share.
• On the same date, Centerbridge Special Credit Partners III-Flex sold 2,110,326 shares of Garrett Motion common stock, also at $10.30 per share.
• The total number of shares sold by these two entities on May 29, 2025, amounts to 3,000,000 shares, generating approximately $30,900,000 in proceeds.
• Following these sales, Centerbridge Credit Partners Master and its related entities beneficially own 8,906,010 shares, representing 4.4% of Garrett Motion's common stock.
• Centerbridge Special Credit Partners III-Flex and its related entities now beneficially own 21,240,799 shares, representing 10.49% of the common stock.
• Jeffrey H. Aronson, as an aggregate reporting person, beneficially owns 30,146,809 shares, which constitutes 14.89% of the class.
• All percentage ownership calculations are based on 202,484,956 shares of Garrett Motion Inc. Common Stock issued and outstanding, as reported in the company's Preliminary Prospectus Supplement filed on May 20, 2025.

Sentiment

Score: 3

Explanation: The sentiment is negative as a major institutional investor has significantly reduced its stake in the company, which can be perceived as a lack of confidence or a strategic exit.

Negatives

• A significant reduction in beneficial ownership by major institutional investors like Centerbridge may signal a decrease in their confidence in the company's future prospects.
• The sale of 3 million shares could exert downward pressure on Garrett Motion's stock price due to increased supply in the market.

Risks

• The divestment by a major shareholder could be perceived negatively by other investors, potentially leading to a decline in investor confidence and stock price.
• A large block sale might indicate that the selling parties believe the stock has reached its peak or that better investment opportunities exist elsewhere.

Future Outlook

NA

Industry Context

This filing is a routine disclosure of changes in beneficial ownership by a major institutional investor. It does not provide direct insights into broader industry trends or competitive dynamics, but a significant divestment by a large holder can sometimes reflect their outlook on the company's specific sector or the broader economic environment.

Stakeholder Impact

• Shareholders: May experience a decrease in share price due to the large sale and potential erosion of investor confidence.
• Potential Investors: May view the divestment by a major holder as a cautionary signal, influencing their investment decisions.

Key Dates

Recommendation

Keywords

Garrett Motion Inc., Centerbridge Partners, SEC filing, Schedule 13D/A, share sale, beneficial ownership, institutional investor, common stock, divestment