Garrett Motion Inc., along with its affiliates, filed a joint plan of reorganization with related disclosure statement in the US Bankruptcy Court on January 8, 2021. As per the plan filed, administrative expense claims, professional fee claims, DIP claims of $250 million, priority tax claims, Ad Hoc lender group expenses, statutory fees, other priority claims and senior subordinated noteholder claims of $413 million, shall be paid in full in cash. Other secured claims shall be paid in full in cash or shall receive collateral securing such claim.

Prepetition credit agreement claims of $1.47 billion shall receive cash in an amount equal to such claim. General unsecured claims shall be reinstated and paid in full. Honeywell plan claims shall receive cash or, at the option and with the mutual consent of the debtors and the plan sponsor, new preferred stock, other preferred stock or indebtedness issued by one or more reorganized debtors or any combination of cash and the foregoing.

Intercompany claims and intercompany interests shall be reinstated. Existing common stock who votes in favor of the Plan, holds 25 or more shares of existing common stock as of the voting record date, and timely exercises the cash election shall receive in cash its pro rata share of the total stockholder distribution value. Each holder of existing common stock who does not timely exercise the cash election shall have its existing common stock reinstated as new common stock, subject to dilution by the rights offering.

Each eligible holder of existing common stock shall also receive its pro rata share of the subscription rights; provided that if the plan sponsor exercises the cash-out, then the rights offering shall be terminated, no rights offering shares shall be issued. GMI common stock 510(b) claims shall receive its 510(b) claim share recovery in the form of a number of shares of new common stock equal to such 510(b) claim share recovery multiplied by the stock elector percentage and cash equal to such 510(b) claim share recovery multiplied by the cash elector percentage; provided that if the plan sponsor exercises the cash-out, all holders of allowed GMI common stock 510(b) claims, if any, shall receive cash in lieu of new common stock. The plan shall be funded through cash in hand of $297 million, exit facilities consisting of exit revolver and exit term debt up to $1.50 billion, sale of assets, issue of new common stock and right offerings.