SCHEDULE: Centerbridge Reduces Garrett Motion Stake to 8%

Centerbridge entities, including Centerbridge Special Credit Partners III-Flex and Centerbridge Credit Partners Master, sold 9 million shares of Garrett Motion Inc. common stock for $12.27 per share.

Summary

• Centerbridge Special Credit Partners III-Flex, L.P. sold 6,335,100 shares of Garrett Motion Inc. Common Stock.
• Centerbridge Credit Partners Master, L.P. sold 2,664,900 shares of Garrett Motion Inc. Common Stock.
• The total number of shares sold by these entities on August 13, 2025, was 9,000,000.
• Each share was sold for $12.27 in cash on the open market.
• Following these transactions, Centerbridge Credit Partners Master, L.P. and its related entities beneficially own 4,740,569 shares, representing 2.4% of the class.
• Centerbridge Special Credit Partners III-Flex, L.P. and its related entities beneficially own 11,306,240 shares, representing 5.6% of the class.
• Jeffrey H. Aronson, as a controlling person, beneficially owns an aggregate of 16,046,809 shares, representing 8% of the class.
• The percentage ownership calculations are based on 201,575,459 shares of Common Stock issued and outstanding.

Sentiment

Score: 4

Explanation: The sentiment is slightly negative due to a significant reduction in stake by a major investor, which could imply a lack of conviction or a strategic exit. However, it's a transactional disclosure rather than a performance report, so the direct impact on company operations is not stated.

Negatives

• A significant reduction in ownership by a major institutional investor like Centerbridge could be interpreted as a decrease in their confidence in the company's future prospects or a strategic portfolio rebalancing.

Risks

• The sale of a large block of shares on the open market could put downward pressure on Garrett Motion Inc.'s stock price in the short term.
• A reduced stake by a major investor might lead to decreased institutional support or influence on corporate governance.

Future Outlook

NA

Industry Context

This filing reflects a significant portfolio adjustment by a major investment firm within the automotive supplier industry. While specific industry trends are not detailed, such a large sale by a key investor could be a response to broader market conditions, company-specific performance, or a strategic shift in the investor's focus.

Stakeholder Impact

• Shareholders: The sale of a large block of shares could lead to increased supply in the market, potentially impacting share price. Existing shareholders might interpret the sale by a major investor as a negative signal.
• Investment Professionals: Analysts will note the reduction in institutional ownership and may re-evaluate their positions or recommendations based on this change.

Key Dates

Recommendation

The filing indicates a significant reduction in ownership by a major institutional investor. While this is a transactional disclosure and not a reflection of company performance, such a large sale by a key holder could signal a lack of conviction or a strategic portfolio rebalancing. This event introduces uncertainty and potential downward pressure on the stock. Without additional information on the company's operational performance or strategic outlook, a 'hold' recommendation is prudent, advising investors to monitor future developments and the market's reaction to this ownership change.

Keywords

Garrett Motion, Centerbridge, Stock Sale, Schedule 13D, Institutional Investor, Shareholding, Common Stock, Equity, Automotive Supplier