Garrett turbo files for bankruptcy

[Turtle_n_Peeps]

I didn't see this one coming.

I hope they can hold it together and get back on their feet again. They make great turbos.

Garrett turbocharger files for Chapter 11.

[dodge_guy]

Sounds like what Daimler did when they bought Chrysler!

[tempforce]

typical hostile takeover, then use the company finances to bail out the parent company. then dumps the company they bought which is now saddled with debts.. sorta like what Mercedes did to Chrysler.

Honeywell used to sell electronics, not anything fancy. they sold slide projectors and other consumer electronics. they sold major electrical devices. they weren't financially strong. until they started acquiring companies with strong credit.

[Turtle_n_Peeps]

wilber1 wrote:
So will the liability go back to Honeywell if Garrett goes bust?

Really good question.
I worked as a contractor in the 80's for Dow Chemical and when we stripped asbestos back then they told us that Dow Chemical owned that asbestos for life. It was trucked to a HW dump around Redding Ca. They said if it had to be moved for some reason Dow Chemical was responsible for the bill........for life. :E

[wilber1]

BenK wrote:
IMHO...screwed by corporate management (that bought them)

Investors got one new Garrett share for every 10 Honeywell shares they owned. No one bought them. Looks like it was just done to get out from under the asbestos liability.

So will the liability go back to Honeywell if Garrett goes bust?

[edbehnke]

lots of companies and small businesses are doing this blaming CV19. regardless, they will continue in business.

[BenK]

IMHO...screwed by corporate management (that bought them)

[wilber1]

Looks like Honeywell used them to dump a bunch of debt and asbestos liabilities. Vulture capitalism.

Garrett Files Suit

Wonder how Honeywell convinced people to accept shares in this scam.

[BurbMan]

That's only part of it, I think the real; issue is the sentence before:
"According to Benzinga, Garrett took on "significant liabilities" during the spinoff in the form of payments to victims of asbestos exposure that originated from Honeywell's Bendix division."

Bottom line they were saddled with debt their business couldn't support. They are staying in business, the article goes on to say that a PE company is acquiring them for $2.1B to re-structure the debt.

[Turtle_n_Peeps]

Ben: they said they aren't selling enough turbos because of CV19? I haven't kept up on auto sales with turbos so I don't know if that's a BS story or not?

[BenK]

X2

Haven't read the article...what happened ?