Group 1 - Marelli, a member of the Fiat Group with over 90 years of history, has filed for Chapter 11 bankruptcy in Delaware to restructure its debts and improve its financial situation [1][3] - The company has secured a financing commitment of $1.1 billion from lenders, with approximately 80% of them supporting the restructuring plan [1] - Marelli's operations are expected to remain unaffected during the bankruptcy process [1] Group 2 - Marelli was formed in 2019 through the merger of Calsonic Kansei and Magneti Marelli, aiming to create a leading global automotive parts supplier with annual revenues exceeding €14 billion [3] - The company has faced declining revenues, with a drop to €10.4 billion in 2020, and has been experiencing continuous losses and high debt levels [3] - Marelli's ranking among global automotive parts suppliers has fallen from 18th in 2021 to 23rd in 2024, with a 67% decrease in free cash flow and a debt-to-equity ratio rising to 185% in 2024 [3] Group 3 - The crisis faced by Marelli is attributed to multiple factors, including cultural clashes, technological disconnections, and over-reliance on a single customer following the merger [4] - The CEO of Marelli, David Slump, emphasized the need for necessary adjustments to stabilize the financial situation and create long-term value for stakeholders [4] - The decision to initiate Chapter 11 is seen as the best option to optimize the balance sheet through debt-to-equity swaps while ensuring normal business operations [4]

Core Viewpoint - Marelli Group, a key supplier for Nissan and Stellantis, is considering filing for bankruptcy protection in the U.S. to ensure business continuity amid stalled debt restructuring talks [2][5] Group 1: Company Background - Marelli Group was formed in 2019 through the merger of Nissan's supplier Calsonic Kansei and FCA's Magneti Marelli, creating a significant player in the automotive parts industry [3][4] - The combined revenue of Marelli and Calsonic Kansei before the merger was €14.6 billion, making it the seventh-largest automotive parts supplier globally [3] Group 2: Financial Struggles - Marelli has faced declining revenues, dropping from €10.4 billion in 2020 to significant losses, with a debt-to-equity ratio rising to 185% in 2024 [4][5] - The company is under severe financial pressure, with debts amounting to ¥650 billion (approximately $4.4 billion) and is negotiating with creditors to cover a ¥100 billion (approximately $670 million) operational funding gap [5][7] Group 3: Potential Acquisition - Indian supplier Motherson has made a bid to acquire Marelli, proposing to buy Marelli's debt at 20% of its face value while KKR would write off its equity [7][8] - If the acquisition proceeds, the combined entity would have an annual revenue exceeding $30 billion, potentially positioning it among the top ten global automotive parts suppliers [8]