Marelli enters court-led rehabilitation | Automotive News Europe

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A key supplier for automakers Nissan and Stellantis, Marelli filed in March for an ADR procedure.

Last month, the supplier selected current owner KKR as its sponsor in order to restructure the business, which would essentially keep it as a key Marelli stakeholder.

“Scheduled to conclude in early August, the capital restructuring will comprise an injection of new equity capital by Marelli’s current shareholder KKR, and the reduction of the company’s existing bank debt,” Marelli said in a statement.

About 95 percent of Marelli’s lenders agreed on the plan, but that still fell short of the unanimous approval an ADR process usually requires.

As part of the turnaround plan, Marelli is seeking the cancellation of about 450 billion yen ($3.3 billion) in debt, out of total obligations of about 1.13 trillion yen, people with knowledge of the matter have said.

Some of the debt will be converted into equity, said the people, who asked not to be identified because the negotiations are not public.  

“KKR is pleased with what today’s result means for Marelli Holdings,” KKR said in an emailed statement.

“We are fully prepared to extend additional financing to Marelli, as needed, to ensure that the company operates its business as usual through the proceedings.”

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