| Item 2.02 | Results of Operations and Financial Condition. |
On April 7, 2020, Garrett Motion Inc. (the “Company”) issued a press release containing certain preliminary results for the quarter ended March 31, 2020, withdrawing the Company’s financial guidance for the year ending December 31, 2020 and announcing a business update related to the impact of theCOVID-19 pandemic. The full text of the press release issued in connection with the announcement is furnished as Exhibit 99.1 hereto and is incorporated herein by reference.
The information in Item 2.02 of this report (including Exhibit 99.1) shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as expressly set forth by specific reference in such a filing.
| Item 2.03 | Creation of a Direct Financial Obligation or an Obligation under anOff-Balance Sheet Arrangement of a Registrant. |
On April 6, 2020, pursuant to the Credit Agreement by and among the Company, Garrett LX I S.à r.l., Garrett LX II S.à r.l., Garrett LX III S.à r.l., Garrett Borrowing LLC, and Honeywell Technologies Sàrl, the lenders and issuing banks party thereto and JPMorgan Chase Bank, N.A., as administrative agent, the Company drew down the remaining balance of approximately $396 million under the Company’s $467 million revolving credit facility.
| Item 5.02 | Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers. |
In light of the uncertainties related to the globalCOVID-19 pandemic, on April 3, 2020, the Company approved temporary reductions in the annual base salaries of all executive officers, including its named executive officers. Effective April 1, 2020, the annual base salaries for Olivier Rabiller, President and Chief Executive Officer; Peter Bracke, Vice President and Interim Chief Financial Officer; Craig Balis, Senior Vice President and Chief Technology Officer; Jérôme Maironi, Senior Vice President, General Counsel, and Corporate Secretary; Thierry Mabru, Senior Vice President, Integrated Supply Chain; Daniel Deiro, Senior Vice President, Global Customer Management and General Manager Japan/Korea; and Fabrice Spenninck, Senior Vice President and Chief Human Resources Officer will be reduced by 20%, with such reduction to remain in effect through the second quarter of 2020.
Additionally, for the same reasons, the Company announced a 20% reduction in the annual cash retainers fornon-employee directors for service on the Company’s Board of Directors, effective April 1, 2020, such reduction to remain in effect through the rest of 2020.
| Item 9.01. | Financial Statements and Exhibits. |
