Marelli strangled by debts
Born in 2019 from the merger of the Italian Magneti Marelli with the Japanese Calsonic Kansei, the company must now deal with a debt exceeding 1,000 billion yen (seven billion euros), if we are to believe the Japan Times. .
Disagree with creditors
The company was unable to obtain a transactional agreement with its creditors, for lack of the required unanimity. This provided in particular for the cancellation of part of its debt.
From now on, the company is forced to resort to legal proceedings.
Marelli’s restructuring plan easier to validate
However, according to a source familiar with the matter, this procedure should make it easier to validate the restructuring plan of Marelli proposed with its owner, the American fund KKR. Indeed, a three-fifths majority of its creditors will now be enough to reach an agreement.
The restructuring plan will indeed take the form in Japan of a simplified restructuring procedure. Thomas Caron, manager of Marelli France wishes to point out that the Japanese procedure has no equivalent in Europe. It is a kind of conciliation that has nothing to do with legal redress.
Towards an approval at the beginning of August?
Marelli said it has already obtained the approval of 95% of its creditors for its restructuring plan. He now hopes that it will be approved in early August.
The company adds that it is not in default and that it has the financial liquidity to honor its commitments.
Support from KKR
KKR meanwhile reaffirmed its support: “we are totally ready to extend additional financing to Marelli (…) to ensure that the company continues its activities normally during the procedure”, indicates a press release from the American fund.
Nissan confident of continued stable business
The Japanese manufacturer Nissan, Marelli’s main customer, also felt that it was “possible to continue stable activity” with this supplier. Expressing confidence in the future execution of the equipment manufacturer’s recovery plan.
“Marelli is an important partner and we maintain appropriate levels of collaboration,” Nissan added in a statement.
Marelli, which has around 54,000 employees worldwide, has suffered badly from the austerity cure implemented by Nissan from 2019, then from the global economic shock caused by the pandemic and the disruption of supply chains.
Our opinion, by leblogauto.com
Remember that Marelli has production sites in France in Argentan (Orne), Châtellerault (Vienne), Saint-Julien-du-Sault (Yonne) and Trappes (Yvelines). The group has also formed a joint venture with Punch, which specializes in electric powertrains and is based in Strasbourg (Bas-Rhin).
Sources: AFP, Japan Times
to summarize
Marelli, an Italian-Japanese automotive supplier, supplier in particular to manufacturers Nissan and Stellantis, began legal proceedings in Japan on Friday with a view to achieving its recovery.
He was unable to obtain unanimous agreement from his creditors on an alternative method.
