Japanese auto parts maker Marelli Corporation has filed for Chapter 11 bankruptcy protection in the United States, marking a significant step in its efforts to restructure its finances. The announcement came Wednesday following prolonged negotiations with creditors and rising uncertainty around the company’s financial stability.
Marelli, known for producing automotive lighting systems and interior components, is backed by private equity firm KKR. Despite the filing, the company reassured stakeholders that it expects no disruption to its day-to-day operations.
“Throughout this process and moving forward, Marelli does not expect any operational impact from the Chapter 11 process,” the company said in a statement.
As part of the restructuring effort, Marelli has secured a $1.1 billion financing commitment from its lenders. The company also confirmed that around 80% of its lenders have already agreed to support the reorganization plan.
A key component of Marelli’s turnaround strategy involves the elimination of all its secured debt, which the company believes will provide a more stable foundation for future growth.
The filing represents a critical moment for Marelli as it aims to emerge leaner and more competitive in a challenging global automotive landscape.
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