Form 4: Cyrus Capital Partners Discloses Planned Sales of Garrett Motion Shares Under 10b5-1 Plan

Cyrus Capital Partners, a 10% owner and director of Garrett Motion Inc., has disclosed planned sales of common stock totaling 271,512 shares in early July 2025 under a pre-arranged 10b5-1 trading plan.

Summary

• Cyrus Capital Partners, L.P., Cyrus Capital Partners GP, L.L.C., and Stephen C. Freidheim, identified as 10% owners and directors of Garrett Motion Inc. (GTX), reported planned sales of common stock.
• On July 2, 2025, 51,865 shares of common stock are planned to be sold at a weighted average price of $11.003 per share, with prices ranging from $11.00 to $11.0044.
• Following the July 2, 2025 transaction, the reporting persons will beneficially own 23,653,333 shares indirectly.
• On July 3, 2025, an additional 219,647 shares of common stock are planned to be sold at a weighted average price of $11.0374 per share, with prices ranging from $11.00 to $11.0618.
• After the July 3, 2025 transaction, the reporting persons will beneficially own 23,433,686 shares indirectly.
• These transactions are 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).
• The beneficial ownership is indirect, held through various private investment funds managed by Cyrus Capital Partners, with Cyrus Capital Partners GP, L.L.C. as the general partner and Stephen C. Freidheim as the Chief Investment Officer and sole member/manager.

Sentiment

Score: 5

Explanation: The sentiment is neutral to slightly negative. While insider selling can be a negative signal, the explicit mention of a 10b5-1 plan mitigates the negative interpretation, suggesting a pre-planned liquidity event rather than a reaction to adverse company news.

Positives

• The disclosure demonstrates transparency regarding planned insider transactions.
• The sales are conducted under a Rule 10b5-1 plan, which indicates the decision to sell was made in advance, potentially mitigating concerns about the timing of the sales relative to material non-public information.

Negatives

• The planned sale of 271,512 shares by a significant 10% owner and director reduces their overall stake in Garrett Motion Inc.
• While under a 10b5-1 plan, a reduction in insider ownership can sometimes be perceived by the market as a lack of confidence, even if pre-planned.

Risks

• Potential for negative market sentiment if investors misinterpret the planned sales as a signal of deteriorating company fundamentals, despite the 10b5-1 plan.
• Reduced alignment of interests between the selling insider and other shareholders as their proportional ownership decreases.

Future Outlook

The document does not provide any forward-looking statements or guidance regarding the company's financial performance or strategic outlook, as it is a disclosure of insider trading activity.

Management Comments

• Stephen C. Freidheim, as the Chief Investment Officer of Cyrus Capital Partners and the sole member and manager of Cyrus Capital GP, is identified as a reporting person and signatory for the transactions.

Industry Context

This Form 4 filing is a routine disclosure of insider trading activity and does not provide broader industry trends or competitive analysis. It reflects a specific investment firm's portfolio management decisions regarding its stake in Garrett Motion Inc.

Related Party Transactions

• The reported sales of common stock by Cyrus Capital Partners, a 10% owner and director, constitute related party transactions.

Stakeholder Impact

• Shareholders: May interpret the reduction in insider ownership as a signal, though the 10b5-1 plan suggests it's a pre-planned portfolio adjustment rather than a loss of confidence.
• Employees, Customers, Suppliers, Creditors: No direct impact from this specific insider trading disclosure.

Key Dates

Recommendation

Keywords

SEC Form 4, Insider Trading, Stock Sale, Beneficial Ownership, Garrett Motion Inc., GTX, Cyrus Capital Partners, 10b5-1 Plan, Director Sale, 10% Owner