Japan-based Marelli Automotive Lighting has filed for Chapter 11 bankruptcy reorganization in the United States as the debt-laden firm said it's struggling in part due to tariffs.
Marelli, owned by a subsidiary of worldwide autoparts supplier Marelli Holdings that's held by private equity firm KKR, is making its second restructuring effort in three years. The first came in 2022 in an out-of-court reorganization in Japan prompted by the financial fallout from the COVID-19 pandemic.
Marelli's reorganization includes a restructuring agreement with $1.1 billion of new money from an unnamed stalking horse bidder, according to the company's filing in the U.S. Bankruptcy Court for the District of Delaware, along with the intention of eliminating billions of dollars of prepetition debt. Other potential bidders have 45 days to make an offer during the go-shop period.
Media reports have identified London-based Strategic Value Partners as the stalking horse firm that would take over ownership of Marelli from KKR. Neither Strategic Value Partners nor KKR responded to CoStar News' requests for comment.
In 2017, KKR acquired Nissan-backed Calsonic Kansei for $4.5 billion. Two years later, it paid $6.5 billion to buy Magneti Marelli from what was then called Fiat Chrysler Automotive. Following the deal, KKR merged the two firms to form Marelli Holdings.
"Critically, this prearranged restructuring will assure Marelli's 46,000 employees and all customers, vendors, suppliers, and business partners that ordinary course operations will continue uninterrupted," David Slump, CEO and president of Marelli Automotive Lighting, said in a statement to the court.
The agreement has been pre-approved by 80% of Marelli's lenders, which hold $4.9 billion in debt after more than a year of back-and-forth negotiations, according to court filings.
Over the past several years, Marelli has navigated persistent industry softness caused by a global downturn in automotive production, intense macroeconomic volatility and geopolitical uncertainty, according to Slump. Marelli began engaging with its secured lenders beginning in August 2024 to address liquidity needs and potential modifications to its credit agreements.
"In March 2025, Marelli's liquidity position began to worsen due to, among other things, macroeconomic headwinds associated with the imposition of tariffs in countries around the world," Slump said.
The tariffs hit Marelli's import/export-focused business, as it operates in 25 countries around the world. Marelli's operations are supported by research and development centers, manufacturing plants and sites where its products are applied.
In the U.S., Marelli maintains its headquarters in a 160,000-square-foot space at 26555 Northwestern Highway in Southfield, Michigan, on a lease it signed in 2020.