Form 4: Centerbridge Entities Divest 3 Million Shares of Garrett Motion Stock in Pre-Planned Sale

Centerbridge Credit Partners Master, L.P. and affiliated entities, significant shareholders and directors of Garrett Motion Inc., reported the sale of 3 million shares of common stock for approximately $30.9 million through pre-arranged trading plans.

Summary

• Centerbridge Credit Partners Master, L.P. and several related Centerbridge entities, along with Jeffrey H. Aronson, filed a Form 4 reporting changes in their beneficial ownership of Garrett Motion Inc. (GTX) common stock.
• On May 29, 2025, Centerbridge Special Credit Partners III-Flex, L.P. disposed of 2,110,326 shares of Garrett Motion Common Stock at a price of $10.3 per share.
• Concurrently, Centerbridge Credit Partners Master, L.P. disposed of 889,674 shares of Garrett Motion Common Stock, also at $10.3 per share.
• The total number of shares sold across these transactions is 3,000,000, amounting to approximately $30.9 million.
• Following these transactions, Centerbridge Special Credit Partners III-Flex, L.P. beneficially owns 21,240,799 shares indirectly, and Centerbridge Credit Partners Master, L.P. beneficially owns 8,906,010 shares indirectly.
• The transactions were made pursuant to a contract, instruction, or written plan for the purchase or sale of equity securities of the issuer that is intended to satisfy the affirmative defense conditions of Rule 10b5-1(c), indicating a pre-planned sale.

Sentiment

Score: 6

Explanation: The sentiment is neutral to slightly negative. While a large insider sale can be viewed negatively, the explicit mention of it being a pre-planned transaction under Rule 10b5-1 mitigates the negative signal, suggesting portfolio management rather than a sudden loss of confidence.

Negatives

• A significant sale of 3 million shares by a 10% owner and director group, even if pre-planned, could be perceived by some investors as a reduction in conviction or a move to diversify holdings, potentially leading to negative sentiment.

Risks

• The sale of a large block of shares by a major institutional investor and director could put downward pressure on Garrett Motion's stock price in the short term, depending on market liquidity and investor interpretation.

Future Outlook

The document does not contain any forward-looking statements or guidance regarding Garrett Motion Inc.'s future performance or strategic direction.

Management Comments

• The reporting persons, including Centerbridge Credit Partners Master, L.P. and Jeffrey H. Aronson, jointly filed this Form 4.
• Each of the reporting persons (other than to the extent it directly holds securities reported herein) states that the inclusion of these securities in this report shall not be deemed an admission of beneficial ownership of any or all of the reported securities for purposes of Section 16 or for any other purpose, pursuant to Rule 16a-1(a)(4).

Industry Context

This Form 4 filing primarily details an insider stock transaction and does not provide broader industry context or trends for the automotive or turbocharger manufacturing sector in which Garrett Motion operates.

Related Party Transactions

• The reported transactions are sales of common stock by entities and individuals (Centerbridge Credit Partners Master, L.P., Centerbridge Special Credit Partners III-Flex, L.P., and Jeffrey H. Aronson) who are identified as 10% owners and directors of Garrett Motion Inc., classifying them as related party transactions.

Stakeholder Impact

• Shareholders: May interpret the large sale by a significant institutional investor and director as a signal, potentially influencing their investment decisions, despite the pre-planned nature of the sale.
• Employees, Customers, Suppliers, Creditors: No direct impact is indicated by this specific filing, as it pertains solely to stock ownership changes.

Key Dates

Keywords

Garrett Motion, GTX, SEC Form 4, Insider Sale, Beneficial Ownership, Centerbridge, Stock Transaction, Rule 10b5-1, Institutional Investor