Turbocharger maker Garrett has filed for Chapter 11 Bankruptcy Protection, but is expected to remain in business as the company is set to be acquired by a private equity firm for $2.1 billion.

The Swiss company supplies many of the global vehicle manufacturers with turbo systems and components. However, with the severe downturn in vehicle sales, due to COVID-19, it voluntarily filed for Chapter 11 bankruptcy protection. It is now jUst over two years since Garrett parted company with former parent company Honeywell International and it has also been hampered by inherited liabilities.  However, observers believe that the company can recover if put on the right footing. It has therefore agreed to be acquired by KPS Capital Partners, a private equity firm, for $2.1 billion.

Garrett says it hopes to operate normally through the transition, maintaining its customer and supplier links and without significant job losses.