Garrett Motion Files Bankruptcy After Asbestos Liabilities (2)

Auto-parts maker Garrett Motion Inc. filed for bankruptcy and plans to sell itself to KPS Capital Partners for $2.1 billion.

The development comes about two years after Garrett Motion was spun off from Honeywell International Inc. It had been in talks with lenders to rework its obligations, including asbestos reimbursements owed to Honeywell as part of the 2018 spinoff. Asbestos is a potent cause of malignancies, including a deadly form of lung cancer.

The Chapter 11 filing in New York allows Garrett to keep operating while it works out details of the sale. In the meantime, it’s seeking court approval ...