AMERICAS DISTRESS DAILY: Marelli Files for Chapter 11 Protection

Struggling auto-parts supplier Marelli filed for Chapter 11 bankruptcy protection in the US as it seeks to slash its debt burden and restructure under new ownership.

• The firm received a commitment for $1.1 billion in debtor-in-possession financing from its lenders, which — coupled with cash generated from the company’s ongoing operations — is expected to provide sufficient liquidity to support Marelli through Chapter 11.
• Strategic Value Partners, led by Victor Khosla, will effectively become the new owner of Marelli as KKR would transfer its shares to a consortium of lenders as part of the proposed deal.

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