Nissan supplier Marelli Holdings files for Chapter 11

Nissan (NSANY) supplier Marelli Holdings, a global technology partner to the automotive industry, 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, 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.” To support the company during this process, Marelli has received a significant commitment for $1.1B in debtor-in-possession financing from its lenders. 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.