Centerbridge, Oaktree Seek Plan to End Garrett Bankruptcy (1)

Centerbridge Partners and Oaktree Capital Group asked a judge for permission to pursue a plan to bring Garrett Motion Inc. out of bankruptcy without selling the auto-parts maker.

The investors filed court papers late Saturday seeking an early end to Garrett’s exclusive right to propose a bankruptcy exit plan. Centerbridge and Oaktree, which would take control of Garrett if their plan wins court approval, say Garrett is trying to quickly liquidate through an auction in which private equity firm KPS Capital Partners would be the lead bidder.

If KPS wins that auction, shareholders aren’t guaranteed a recovery and could see ...