Latest news with #MarelliHoldingsCo.
Mint
2 days ago
- Automotive
- Mint
Marelli Approved to Borrow $519 Million at Start of Bankruptcy
(Bloomberg) -- Bankrupt auto-parts supplier Marelli Holdings Co. won court approval to borrow $518.9 million to help fund its reorganization after delaying a request for some parts of a financing package questioned by a federal bankruptcy watchdog. The loan, which is being provided by Deutsche Bank and other senior Marelli lenders, will need to be approved in two stages, which is typical in large corporate bankruptcy cases. The company will return to court in the coming weeks to seek final approval from US Bankruptcy Judge Craig Goldblatt for the full, $1.1 billion financing package. Marelli delayed seeking approval of some aspects of the financing package in order to resolve concerns from the US Trustee, which oversees bankruptcy cases on behalf of the US Justice Department. When the company returns to court, it will renew its request to refinance some of its older debt. The financing package is 'complex,' company lawyer Spencer A. Winters told Goldblatt during a court hearing in Wilmington, Delaware. The proposal for it includes two loan tranches and four different payback priorities, he said. The company filed bankruptcy Wednesday after being caught up in industry upheaval as electrification and automation forced global carmakers to shift their strategy to cope with declining sales in key markets. The company blamed tariffs and lingering supply-chain problems that began during the Covid-19 pandemic, according to court papers. About 80% of the company's lenders have signed an agreement to support the restructuring, which is designed to shed debt, Marelli said in a statement. The loan approved Wednesday will help the company continue operating normally during the insolvency case. Lenders involved in the restructuring include Fortress Credit Advisors, owed more than $270 million and funds managed by Strategic Value Partners owed more than $1.3 billion, according to court records. The case is Marelli Automotive Lighting USA, 25-11034, US Bankruptcy Court, District of Delaware (Wilmington) More stories like this are available on
3 days ago
- Automotive
Marelli Files for Chapter 11
News from Japan Economy Jun 11, 2025 20:19 (JST) Tokyo, June 11 (Jiji Press)--Japanese auto parts maker Marelli Holdings Co. said Wednesday that it has filed for Chapter 11 bankruptcy protection in the United States. Marelli, formerly Calsonic Kansei Corp., will aim for a turnaround under court supervision, after it failed to reach an agreement with creditors. The latest move may have an impact on the restructuring of Nissan Motor Co., a struggling Japanese automaker that sources some parts from Marelli. "If the survival of Marelli is endangered, Nissan's production will be affected," a person familiar with the matter said. Creditors, including Mizuho Bank and foreign investment funds, discussed options including an acquisition of Marelli by an Indian auto parts supplier, but they failed to reach an agreement, people familiar with the matter said. Marelli said around 80 pct of its creditors have signed agreements to support its Chapter 11 reconstruction and that it will be able to receive a bridge loan of 1.1 billion dollars from creditors. There will be no problem with its business activities during the bankruptcy procedures, Marelli said. [Copyright The Jiji Press, Ltd.] Jiji Press
3 days ago
- Automotive
Japan's Marelli Seeks U.S. Chapter 11 Bankruptcy Protection
News from Japan Economy Jun 11, 2025 18:10 (JST) Tokyo, June 11 (Jiji Press)--Japanese auto parts maker Marelli Holdings Co. said Wednesday that it has filed for bankruptcy protection under Chapter 11 of the U.S. Bankruptcy Code. Marelli, formerly Calsonic Kansei Corp., will aim for a turnaround under court supervision, after it failed to reach an out-of-court settlement with creditors such as financial institutions. Creditor financial institutions proposed a debt settlement plan involving a buyout by a major Indian auto parts maker. But it appears that consent was not obtained from some creditors. Marelli said there will be no problem with its business activities during the period in which its filing is processed, given that around 80 pct of its creditors have signed agreements to support its reconstruction under Chapter 11. END [Copyright The Jiji Press, Ltd.] Jiji Press
Mint
3 days ago
- Automotive
- Mint
Auto Parts Supplier Marelli Files for Chapter 11 Bankruptcy
(Bloomberg) -- Marelli Holdings Co., the struggling auto parts supplier for Nissan Motor Co., Stellantis NV and other carmakers, has filed for Chapter 11 bankruptcy protection in the US as it seeks to slash its debt burden and restructure under new ownership. About '80% of the company's lenders have signed an agreement to support the restructuring, which will deleverage Marelli's balance sheet and strengthen its liquidity position,' Marelli said in a statement. It added it does not expect the process to have any operational impact on its business. Marelli has received a commitment for $1.1 billion in debtor-in-possession financing from its lenders. Upon Court approval, this amount, coupled with cash generated from the company's ongoing operations, is 'expected to provide sufficient liquidity to support the company through the Chapter 11 process,' Marelli said. The auto parts supplier has been caught up in industry upheaval as electrification and automation force global carmakers to shift their strategy to cope with declining sales in key markets. One person familiar with the matter said earlier this week that global investment firm Strategic Value Partners LLC, led by Victor Khosla, will effectively become the new owner of Marelli. KKR & Co., the US-based private equity group that created Marelli in 2019 by merging its Calsonic Kansei and Magneti Marelli units, will transfer its shares to the consortium of lenders as part of the proposed deal, the person said. Representatives for KKR declined to comment. Strategic Value Partners didn't respond to an email seeking comment. Marelli, which employs more than 50,000 people, had sought unsuccessfully to restructure over the past few years as orders from customers fell. The manufacturer based in Saitama, Japan, operates around 170 facilities globally that supply lighting systems, air conditioning, electric motors, suspensions and other components to carmakers. Apart from SVP, Marelli's creditors include Deutsche Bank AG, Mizuho Financial Group Inc. and other lenders. The consortium also includes Seoul-based MBK Partners Ltd. and New York's Fortress Investment Group LLC, the person said. Marelli filed for court-led rehabilitation in 2022 and at that time, its total debt was around ¥1.1 trillion ($7.6 billion), the most ever for a Japanese manufacturer. That was since reduced to around ¥650 billion. 'After careful review of the company's strategic alternatives, we have determined that entering the Chapter 11 process is the best path to strengthen Marelli's balance sheet by converting debt to equity,' Marelli CEO David Slump said in the statement. 'Taking this action now provides access to new liquidity to fund our long-term growth and innovation pipeline.' (Updates with detail from official statement.) More stories like this are available on
