Marelli Initiates Voluntary U.S. Chapter 11 Proceedings to Strengthen Financial Position and Facilitate a Value-Maximizing Restructuring

Reaches Restructuring Support Agreement ("RSA") with Approximately 80% of Lenders

Secures Commitment of $1.1 Billion in Debtor-in-Possession ("DIP") Financing from Lenders

100% of Secured Debt to be Eliminated

Access to New Liquidity Designed to Support Normal Course Business Operations; Marelli will Continue Delivering Reliable, High-Performance Products for Customers

TOKYO, June 11, 2025 /PRNewswire/ -- Marelli Holdings Co. Ltd. ("Marelli" or the "Company"), a global technology partner to the automotive industry, today announced that it has commenced voluntary chapter 11 cases in the United States Bankruptcy Court for the District of Delaware in order to comprehensively restructure its long‑term debt obligations. Approximately 80% of the Company's lenders have signed an agreement to support the restructuring (the "Restructuring Support Agreement"), which will deleverage Marelli's balance sheet and strengthen its liquidity position.

Throughout this process and moving forward, Marelli does not expect any operational impact from the chapter 11 process, and the Company will continue to work closely with its customers, suppliers, and partners to innovate and invest in its portfolio of advanced technologies that will differentiate the vehicles of the future and transform mobility. A complete list of the Marelli affiliates involved in the chapter 11 cases can be found at www.veritaglobal.net/Marelli.

"At Marelli, we have been proactive in making necessary adjustments to stabilize our financial position so that we can continue to deliver long-term benefits for our valued customers, partners and employees," said David Slump, President and CEO, Marelli. "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. 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, while ensuring we continue operating as usual. Taking this action now provides access to new liquidity to fund our long-term growth and innovation pipeline, and ensures our customers and partners all over the world can continue to rely on Marelli for on-time delivery of advanced technologies that shape the vehicles of the future."

Mr. Slump continued, "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. We are also grateful for the hard work and dedication of our employees who remain focused on delivering the best service possible."

To support the Company during this process, Marelli has received a significant commitment for $1.1 billion in debtor-in-possession financing ("DIP Financing") from its lenders. This additional capital underscores lenders' continued support and confidence in the Company's underlying business and its long-term potential. Upon Court approval, the DIP Financing, 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. In addition to the DIP Financing, the Restructuring Support Agreement provides for a comprehensive deleveraging transaction through which the DIP Lenders will take ownership of the business upon emergence from chapter 11, subject to a 45-day overbid process.

Marelli filed a number of customary first day motions seeking Court approval to continue its operations throughout the chapter 11 process, including, among other things, payment of employee wages and benefits without interruption and continuation of programs that are integral to customer relationships. The Company anticipates receiving Court approval for these requests and intends to continue honoring its obligations to key stakeholders post‑filing, including by satisfying payment obligations to suppliers for goods and services provided in accordance with customary terms after the filing. The Company will be working with its suppliers regarding obligations which arose before the chapter 11 filing to reach agreements on payment terms.

Additional Information
Additional information about Marelli's financial restructuring is available at www.marelliforward.com. Court filings and other information related to the proceedings, including the claims process, are available on a separate website administrated by the Company's claims agent, Verita, at www.veritaglobal.net/Marelli; by calling Verita's representatives toll-free at 877-606-7509 or +1 310-751-2626 for calls originating outside of the U.S. or Canada; or by emailing Verita at www.veritaglobal.net/Marelli/inquiry.

Advisors
Kirkland & Ellis LLP is serving as legal counsel to Marelli. PJT Partners Inc. is serving as financial advisor and Alvarez & Marsal LLC is serving as restructuring advisor to Marelli. Akin Gump Strauss Hauer & Feld LLP, Houlihan Lokey, and AlixPartners LLP are serving as advisors to an ad hoc group of lenders.

About Marelli
Marelli is a global mobility technology supplier to the automotive sector. With a strong and established track record in innovation and manufacturing excellence, our mission is to transform the future of mobility through working with customers and partners to create a safer, greener, and better-connected world. With around 45,000 employees worldwide, the Marelli footprint includes over 150 sites globally.

View original content:https://www.prnewswire.com/news-releases/marelli-initiates-voluntary-us-chapter-11-proceedings-to-strengthen-financial-position-and-facilitate-a-value-maximizing-restructuring-302478730.html

SOURCE Marelli