Marelli initiates bankruptcy protection procedures

On June 11, 2025, Marelli Holdings Co., Ltd., a major player in the global automotive parts industry, made a significant decision - to voluntarily file for Chapter 11 bankruptcy protection with the US Bankruptcy Court in Delaware. This move by Marelli aims to comprehensively restructure the company's long - term debt to address the current complex financial difficulties.
Notably, approximately 80% of the creditors have signed agreements to support this restructuring. David Slump, President and CEO of Marelli, stated that although the company has performed well in terms of recent results and profitability, the working capital gap caused by industry pressure urgently needs to be addressed. After careful consideration, initiating the Chapter 11 process to optimize the balance sheet through debt - to - equity conversion while maintaining normal business operations is the best choice for the company. In addition, to ensure normal operations during this period, Marelli has obtained $1.1 billion in debtor - in - possession financing (DIP financing) provided by creditors. Throughout the restructuring process and future operations, Marelli anticipates that this procedure will not affect its daily operations. It will still closely cooperate with customers, suppliers, and partners and continue to invest in innovative resources to develop advanced technology portfolios.