Latest news with #Slump
Yahoo
11-06-2025
- Automotive
- Yahoo
Marelli initiates Chapter 11 bankruptcy to restructure debt
Marelli Holdings, a technology partner in the automotive industry, has filed for voluntary Chapter 11 proceedings in the US Bankruptcy Court for the District of Delaware. This strategic move is aimed at restructuring the company's long-term debt obligations. The filing has garnered the support of approximately 80% of Marelli's lenders, who have signed a restructuring support agreement to deleverage the company's balance sheet and enhance its liquidity. Marelli president and CEO David Slump said: "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. 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." Throughout the Chapter 11 process, Marelli anticipates no operational disruptions, maintaining its commitment to innovation and investment in advanced automotive technologies. These efforts are expected to shape the future of mobility and distinguish upcoming vehicle models. To facilitate its restructuring, Marelli has secured $1.1bn in debtor-in-possession financing from its lenders. Subject to court approval, this financing, along with the company's operational revenue, will provide the necessary liquidity for Marelli during the Chapter 11 process. The restructuring support agreement also outlines a plan for the lenders to assume ownership of Marelli upon its emergence from Chapter 11, following a 45-day overbid process. Marelli has filed customary motions to ensure business continuity during the restructuring, which includes uninterrupted payment of employee wages and maintenance of essential customer programs. The company expects to receive court approval for these motions and plans to uphold its commitments to stakeholders, including fulfilling payment obligations to suppliers for post-filing goods and services. Marelli is actively engaging with suppliers to negotiate terms for pre-filing obligations. Slump added: "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." "Marelli initiates Chapter 11 bankruptcy to restructure debt" was originally created and published by Just Auto, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
11-06-2025
- Automotive
- Yahoo
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 "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 InformationAdditional information about Marelli's financial restructuring is available at 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 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 AdvisorsKirkland & 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 MarelliMarelli 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: SOURCE Marelli
The Star
21-05-2025
- Business
- The Star
MNCs foresee tailwinds for vibrancy
The momentum generated by government policies aimed at stabilising foreign investment, combined with the rapid growth of green and artificial intelligence-driven economies, will deliver strong tailwinds for foreign companies in China this year, said foreign business executives. With rising global economic headwinds and uncertainty over the United States' trade policies, many global enterprises are opting to consolidate their presence in China, with plans to maintain or expand investment. China's stable and business-friendly environment supported a modest rebound in foreign direct investment in March, with actual FDI inflows into the Chinese mainland increasing by 13.2 percent year-on-year, data from the Ministry of Commerce showed. Marelli Holdings Co Ltd, a Saitama, Japan-headquartered multinational automotive parts manufacturer with more than 50 manufacturing facilities across the world, will expand its engineering team from 800 to 1,000 in China over the next three years. "Many opportunities arise from Chinese automakers' rapid shift toward electrification and intelligence, especially in the form of software-defined vehicles, which are setting new benchmarks for speed, scale and innovation," said David Slump, the group's president and CEO. With China and the US agreeing to de-escalate trade tensions last week, Slump said that these two countries are major markets for Marelli. "We are closely monitoring and assessing the situation, and are committed to minimising any impact on our operations and customers," said Slump. He added that the company is already exporting advanced products and solutions from China to other markets, including Europe, Mexico and Southeast Asia. Also upbeat about the Chinese market, British pharmaceutical company AstraZeneca announced in March an investment of $2.5 billion to establish in Beijing its sixth global strategic R&D centre, and further expand its biotech innovation partnerships and local manufacturing capabilities. The new facility will advance early-stage research and clinical development and will be enabled by a new AI and data science laboratory. Susan Galbraith, executive vice-president, oncology R&D, Astra-Zeneca, said that having two of its six global strategic R&D centres in China reflects the group's confidence in China's world-class biomedical innovation ecosystem and reinforces the nation's critical role in its global R&D strategy. Ji Wenhua, a professor at the Academy of China Open Economy Studies, which is part of the University of International Business and Economics in Beijing, said that China's well-developed industrial bases, strong supply chain resilience and policy emphasis on innovation continue to make it an attractive destination for global capital. According to China's 2025 Action Plan for Stabilising Foreign Investment, the country will support pilot regions in effectively implementing opening-up policies related to areas such as value-added telecommunication, biotechnology and wholly foreign-owned hospitals, providing whole-journey services for foreign-invested projects in these sectors. The action plan also supports foreign businesses to participate in China's new industrialisation, with a focus on high-tech fields. Global capital has been welcomed in service sectors such as elderly care, culture and tourism, sports, healthcare, vocational education and finance. As part of its strategy to strengthen operations in China, US express transportation service provider FedEx Corp announced in mid-May that it would enhance its international export services from Shanghai. The cutoff times for same-day outbound shipments from Shanghai to Europe, Asia-Pacific and the Middle East, India and Africa will be further extended. The foreign trade value of foreign-invested businesses reached 4.1 trillion yuan ($567.51 billion) in China between January and April, up 1.9 percent year-on-year, accounting for 29 percent of China's total foreign trade value, statistics from the General Administration of Customs showed. In the meantime, Jiangsu province, a major hub for foreign-invested companies, recorded 864.25 billion yuan in foreign trade value, up 7.2 percent year-on-year, according to Nanjing Customs. - China Daily/ANN
