Marelli Chapter 11: Proposed Plan and October Deadlines
Evidence cutoff: October 15, 2026.
Marelli filed its proposed joint chapter 11 plan on August 3, 2026. An October 12 notice scheduled the disclosure-statement hearing for October 20, 2026, at 1:00 p.m. Eastern before Judge Craig T. Goldblatt. That hearing concerns the disclosure statement; it is not a confirmation hearing, and the notice permits further amendments and adjournments. October 12 hearing notice, pp. 1–2
An October 13, 2026 order, pp. 1–3 extended plan-filing exclusivity through December 11, 2026, and solicitation exclusivity through February 11, 2027. The extension followed the plan filing and does not establish confirmation, completed lender ownership or an emergence date. Separately, an October 13 notice reported a consensual extension of the committee’s challenge period to October 23, 2026, under authority granted in an August 26 order. Challenge-period extension notice, p. 2
Marelli Holdings Co., Ltd. and debtor affiliates filed for chapter 11 protection in Delaware on June 11, 2025. The Japan-based automotive supplier entered the cases with approximately $4.9 billion in funded debt and a restructuring support agreement backed by approximately 80% of its lenders. The original financing received final court approval in July 2025; a June 2026 amendment subsequently increased authorized facility amounts. The August 2026 plan proposes different cash, exit-loan and equity treatment for different financing tranches. Filing announcement, Slump declaration, pp. 3, 17, DIP amendment order, pp. 1–5, proposed plan, p. 24
Sources (21)
- October 12 hearing notice, pp. 1–2Court filing (opens in a new tab)
- October 13, 2026 order, pp. 1–3Court filing (opens in a new tab)
- Challenge-period extension notice, p. 2Court filing (opens in a new tab)
- Slump declaration, pp. 3, 17Court filing (opens in a new tab)
- DIP amendment order, pp. 1–5Court filing (opens in a new tab)
- proposed plan, p. 24Court filing (opens in a new tab)
- first-day declaration, p. 1Court filing (opens in a new tab)
- Interim DIP order, p. 3Court filing (opens in a new tab)
- DIP motion, pp. 9, 12Court filing (opens in a new tab)
- final DIP order, pp. 19–20Court filing (opens in a new tab)
- Second interim DIP orderCourt filing (opens in a new tab)
- Marelli Initiates Voluntary U.S. Chapter 11 Proceedingsmarelli.com · June 11, 2025 (opens in a new tab)
- Marelli: Our Historymarelli.com (opens in a new tab)
- KKR Announces Tender Offer for the Acquisition of Calsonic Kanseimedia.kkr.com · November 22, 2016 (opens in a new tab)
- KKR Completes Tender Offer for Calsonic Kanseimedia.kkr.com · March 23, 2017 (opens in a new tab)
- Calsonic Kansei and Magneti Marelli to Create a Leading Independent Automotive Components Supplier (Stellantis Media, 2018-10-22)media.stellantisnorthamerica.com · October 22, 2018 (opens in a new tab)
- Auto-Parts Supplier Marelli Files Bankruptcy, Blames Tariffsclaimsjournal.com · June 12, 2025 (opens in a new tab)
- Marelli prearranged chapter 11 filing and restructuring support agreement (Davis Polk, 2025-06)davispolk.com · June 1, 2025 (opens in a new tab)
- Willkie Advises Deutsche Bank on Marelli’s Chapter 11 Restructuring and Super-Senior DIP Financingwillkie.com · June 1, 2025 (opens in a new tab)
- Marelli Secures Final Approval of $1.1 Billion in Debtor-in-Possession Financing (Marelli, 2025-07-31)marelli.com · July 31, 2025 (opens in a new tab)
- Marelli Receives Court Approval of "First Day" Motions (PRNewswire, 2025-06-12)prnewswire.com · June 12, 2025 (opens in a new tab)
Case record
Next hearing: · Plan & Emergence
Public case facts. Searchable documents available. Full docket access requires Pro.
| Case snapshot | Details |
|---|---|
| Lead debtor | Marelli Automotive Lighting USA LLC, with affiliated debtors |
| Court | U.S. Bankruptcy Court for the District of Delaware |
| Jointly administered case | 25-11034 |
| Judge | Craig T. Goldblatt |
| Petition date | June 11, 2025 |
| Filing-time funded debt | Approximately $4.9 billion; not a current balance |
| Plan status | Proposed joint plan filed August 3, 2026 |
| Scheduled disclosure-statement hearing | October 20, 2026, at 1:00 p.m. Eastern, subject to further adjournment |
| Committee challenge deadline | October 23, 2026, following a consensual extension reported October 13 |
| Exclusivity deadlines | Plan filing: December 11, 2026; solicitation: February 11, 2027 |
| Original DIP financing | Approximately $1.1 billion in new-money commitments, plus a separate roll-up of qualifying participating lenders’ prepetition loans |
| June 2026 DIP amendment | Senior facility increased to $900 million; junior facility increased to up to $542 million. These facility amounts include existing loans and do not establish cash drawn. |
| Proposed exit structure | Tranche-specific cash, exit-loan and equity treatment under the filed plan, subject to its conditions |
Sources: first-day declaration, p. 1, Slump declaration, hearing notice, challenge-period notice, exclusivity order, DIP amendment order, proposed plan.
KKR’s Supplier Acquisitions
Marelli’s modern business combined Calsonic Kansei and Magneti Marelli in 2019. The two businesses brought complementary product lines and geographic footprints, including thermal systems, interiors, electronics, lighting and powertrain components. Marelli’s corporate history
Calsonic Kansei acquisition, 2016–2017. KKR announced a tender offer through CK Holdings on November 22, 2016. Nissan agreed to tender its approximately 41% holding, and the announced consideration valued Calsonic Kansei at approximately JPY498.3 billion. On March 23, 2017, KKR reported completion of the tender offer, with 95.21% of shares tendered and procedures planned to acquire the remainder. The completion announcement identified the Nissan-Renault-Mitsubishi Alliance as Calsonic Kansei’s primary customer. Tender-offer announcement, completion announcement
Magneti Marelli acquisition, 2018–2019. In October 2018, FCA announced an agreement to sell Magneti Marelli to CK Holdings for EUR6.2 billion. The announcement described projected combined revenues of EUR15.2 billion and nearly 200 facilities and R&D centers, with closing expected in the first half of 2019 subject to approvals and other conditions. These were transaction-announcement figures, not Marelli’s filing-time operating statistics. Marelli’s official history identifies the combination in 2019. FCA announcement, Marelli history
The Path to Financial Distress
The filing-time declaration described persistent weakness in global automotive production, macroeconomic volatility and geopolitical uncertainty. Marelli began engaging with secured lenders in August 2024 about liquidity needs and possible credit-agreement changes. The declaration reported approximately $4.9 billion in funded debt at filing; it did not attribute that entire outstanding balance to acquisition financing. Slump declaration, pp. 2–3, 17
Tariffs added pressure to an already strained business. Claims Journal reported that Marelli’s court papers cited lingering supply-chain problems dating to the pandemic and that CEO David Slump attributed severe tariff exposure to the company’s import/export-focused operations and tariffs affecting automotive manufacturers and suppliers. These were the company’s explanations for its distress. Claims Journal’s June 12, 2025 report
In the June 11 filing announcement, Slump said industry-wide market pressures had created a working-capital gap despite recent progress and profitability. Marelli presented chapter 11 as a means to obtain liquidity and restructure debt while continuing operations. Marelli’s filing announcement
Filing-Time Capital Structure and Restructuring Agreement
The first-day declaration reported the following funded debt at the petition date. Dollar amounts reflected exchange rates as of June 9, 2025 and should not be read as current balances. Slump declaration, p. 17
| Filing-time facility | Amount outstanding |
|---|---|
| Emergency Loan Facility | Approximately $350 million |
| Senior revolving facility | Approximately $540 million |
| Senior term facility | Approximately $4.010 billion |
| Total funded debt | Approximately $4.9 billion |
The revolving and term facilities together comprised approximately $4.55 billion in senior loans. The declaration identified KKR-managed funds and accounts as equity owners. Slump declaration, pp. 3, 17
At filing, approximately 80% of Marelli’s lenders supported the RSA. The agreement contemplated a 45-day marketing process and, if no overbid emerged, conversion of the DIP facilities into all reorganized common equity upon plan consummation. That was a proposed transaction. The supplied evidence does not establish the marketing process’s outcome or a completed ownership transfer. Marelli’s filing announcement, Davis Polk’s filing-time RSA summary
The August 2026 plan distinguishes proposed treatment for participating and non-participating senior lenders, as discussed below. Proposed plan, pp. 26–29
DIP Financing and the June 2026 Amendment
The original DIP package contained approximately $1.107 billion in new-money commitments: approximately $864.8 million of first-out Tranche A loans and approximately $242.1 million of second-out Tranche B loans. Deutsche Bank AG, London Branch was identified as the sole lender for the approximately $865 million senior tranche; certain prepetition secured lenders provided the junior financing. The entire new-money package should therefore not be attributed to the ad hoc lender group. Interim DIP order, p. 3, Willkie’s Deutsche Bank financing announcement
The package separately provided for a roll-up of 47.5% of prepetition senior loan obligations held by DIP lenders providing their pro rata portion of the Tranche B loans. This applied to qualifying participating lenders’ holdings, not to all prepetition senior claims. The final order authorized approximately $1.1 billion of those prepetition loans to continue as Tranche C DIP obligations, subject to its terms. That roll-up was separate from new cash financing. DIP motion, pp. 9, 12, final DIP order, pp. 19–20
| Date | Authorization | Borrowing authority, subject to applicable conditions |
|---|---|---|
| June 12, 2025 | First interim DIP order | Up to approximately $519 million of Tranche A loans |
| July 25, 2025 | Second interim DIP order | An additional $130 million of Tranche A loans |
| July 30, 2025 | Final DIP order | Final authority for approximately $864.8 million of Tranche A and $242.1 million of Tranche B loans, plus the specified roll-up |
Marelli announced the final approval on July 31, 2025. The court order itself is dated July 30. These authorizations establish permitted borrowing, rather than proof that every available dollar was drawn. Final DIP order, company announcement
On June 8, 2026, the court authorized amendments to the DIP credit agreements following the May 29 motion. The amendment increased the senior DIP loan amount from approximately $865 million to $900 million, incorporating rolled existing loans and new money. It increased the junior DIP amount from approximately $242 million to up to $542 million through up to $300 million of new Tranche A-1 loans. It also authorized maturity extensions and preserved the final DIP order except as modified. DIP amendment order, pp. 1–5
The amended facility amounts include existing debt. They are not all incremental cash, and the order does not establish actual drawings at those limits.
August 2026 Proposed Plan and Exit Structure
The proposed joint plan filed August 3, 2026 distinguishes treatment by DIP tranche and creditor class. The following terms remain conditional on confirmation, effectiveness and the applicable plan provisions. They do not establish completed payments or ownership changes. Proposed plan
| DIP tranche | Proposed treatment |
|---|---|
| Tranche A and A-1 | Payment in full in cash on the effective date, absent agreed alternative treatment |
| Tranche B | At the required plan sponsors’ election: cash payment; exchange into exit-facility loans with cash for the remainder; or conversion into new common stock or a cash/stock combination |
| Tranche C | Pro rata new common stock, subject to specified dilution |
Source: proposed plan, p. 24.
| Claim or interest | Proposed treatment |
|---|---|
| Emergency Loan Claims, Class 3 | Full cash payment to the extent not previously paid, subject to agreed less favorable treatment |
| Senior Loan Claims, Class 4 | Non-participating lenders receive cash equal to 11% of allowed principal; participating lenders waive recovery on their senior loan claims. The class is impaired and entitled to vote. |
| General Unsecured Claims, Class 5 | Reinstatement or other treatment rendering allowed claims unimpaired, subject to the plan’s exceptions and consent provisions |
| Preferred equity and common stock, Classes 8–9 | Cancellation without distributions |
Source: proposed plan, pp. 26–29.
For Class 5, plan footnote 6 states that the debtors and required plan sponsors continue to diligence general unsecured claims and may seek to amend their treatment before the disclosure-statement hearing. The proposed unsecured-creditor treatment remains subject to that specific diligence and amendment warning. Proposed plan, pp. 26–29
These proposed recoveries and exit arrangements carry material qualifications. Plan footnotes disclose requested RSA amendments concerning emergency and senior loan treatment and continuing negotiations with key OEM customers. They warn that insufficient customer concessions could require further RSA amendments affecting the business plan and exit financing. Those negotiations limit how definitively the proposed ownership and financing structure can be described. Proposed plan, p. 27
Business Continuity and Employees
At filing, Marelli said it expected no operational impact from chapter 11 and intended to continue serving customers and working with suppliers. The first-day declaration described a business operating in 24 countries and supplying more than 65 OEMs and brands, including Stellantis and Nissan. It explained that deliveries followed customers’ just-in-time or just-in-sequence production schedules, making continuity important to customer manufacturing. These are filing-time descriptions and expectations. Filing announcement, Slump declaration, p. 2
Marelli’s June 12, 2025 release reported approval to continue employee wages and benefits, customer programs and full payment for supplier goods and services provided on or after June 11. That release described around 45,000 employees worldwide. The figure is a dated company disclosure, not a current workforce count. Neither the filing-time expectation nor the first-day authorizations establishes uninterrupted supply throughout the subsequent restructuring. First-day approval announcement
Key Timeline
The future dates above reflect the hearing notice, challenge-period notice and exclusivity order available at the October 15, 2026 evidence cutoff. They do not establish an emergence date.
Announced Advisors and Case Information
Marelli’s June 11, 2025 announcement identified Kirkland & Ellis LLP as legal counsel, PJT Partners Inc. as financial advisor and Alvarez & Marsal LLC as restructuring advisor. It also identified Akin Gump Strauss Hauer & Feld LLP, Houlihan Lokey and AlixPartners LLP as advisors to an ad hoc group of lenders. These are the roles reported in the company announcement. Marelli’s filing announcement
Willkie reported representing Deutsche Bank AG, London Branch in the senior DIP financing, while Davis Polk reported advising Mizuho Bank in several lender capacities. Willkie announcement, Davis Polk announcement
The jointly administered case is captioned Marelli Automotive Lighting USA LLC, et al. The court materials direct readers to the claims and noticing agent’s website for a complete debtor list. Marelli identifies Verita as the administrator of the case-information site, including claims information. Exclusivity order, p. 1, Marelli’s case-information announcement
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This article was researched and written with AI assistance, using court filings, public records, and news sources. AI-generated content can contain errors. Verify all information against primary sources before relying on it. This is not legal or financial advice. See the disclaimer.