Marelli Holdings Co., a major global auto parts supplier, is preparing to seek Chapter 11 bankruptcy protection in the U.S. as part of a larger effort to cut its debt and restructure under new ownership, according reporting from Bloomberg, citing individuals familiar with the situation.
The proposed plan would see Strategic Value Partners LLC (SVP), a global investment firm led by Victor Khosla, become Marelli’s effective new owner after leading a creditor-backed restructuring agreement. The information comes from sources who requested anonymity because the matter is not yet public.
Marelli, which supplies components to automakers including Nissan Motor Co. and Stellantis NV, has struggled financially as the global automotive sector shifts toward electrification and automation, leading to declining sales in key markets. The company employs more than 50,000 people and operates approximately 170 manufacturing facilities worldwide, producing lighting systems, air conditioning units, electric motors, suspensions and other parts.
Marelli’s current debt load stands at approximately $4.5 billion, down from the $7.6 billion recorded during its court-led rehabilitation filing in 2022. At that time, the debt total marked the highest ever for a Japanese manufacturer.
The company’s ownership transition follows years of financial strain since private equity firm KKR & Co. created Marelli in 2019 by merging its Calsonic Kansei and Magneti Marelli units. Under the proposed restructuring, KKR will transfer its shares to a consortium of Marelli’s creditors.
In addition to SVP, Marelli’s creditor group includes Deutsche Bank AG, Mizuho Financial Group Inc., MBK Partners Ltd. of Seoul, and New York-based Fortress Investment Group LLC.
