Marelli Holdings has voluntarily filed for Chapter 11 protection in the U.S. Bankruptcy Court for the District of Delaware to restructure its long-term debt. Around 80% of the company's lenders have signed a Restructuring Support Agreement, which aims to improve Marelli’s balance sheet and liquidity. The company has secured $1.1 billion in debtor-in-possession financing from its lenders, which, along with ongoing operational cash flow, is expected to provide sufficient liquidity throughout the process. The agreement outlines a debt-to-equity conversion plan, with DIP lenders taking ownership upon Marelli’s exit from Chapter 11, subject to a 45-day overbid process. The company has filed customary first-day motions to ensure operational continuity, including employee wage payments and supplier obligations.
President and CEO David Slump stated, “While we are pleased with our recent progress and profitability, industry-wide market pressures have created a gap in working capital that must be addressed.” He added, “Taking this action now provides access to new liquidity to fund our long-term growth and innovation pipeline.” Slump also emphasized that Marelli will maintain operations and customer service during the process, noting, “Marelli’s focus on innovation, digitalization and technology has never been stronger. As we move through this process, we will continue to serve our customers and work with our suppliers and partners as they have come to expect.”
