A bankruptcy judge authorized auto supplier Garrett Motion Inc. to designate a planned sale to private-equity firm KPS Capital Partners LP as the company’s best offer to date, giving it a leg up over others ahead of a competitive process, the Wall Street Journal reported. Bankruptcy Judge Michael Wiles said that the Garrett could tap KPS as the lead bidder, or stalking horse, to set a minimum price for the company and also approved $84 million in breakup fees and expenses for the proposed deal. Winning the stalking-horse designation was a key hurdle for KPS in its push to buy Garrett despite opposition from a majority of Garrett’s shareholders as well as former parent Honeywell International Inc., the creditor with the most to lose if the bankruptcy sale goes through.
