— By Plasteurope.com staff — 

The efforts of automotive supplier Marelli (Saitama, Japan; www.marelli.com) to restructure financially with the help of an investor have failed. The US parent company of the Italian-Japanese firm has filed for Chapter 11 bankruptcy protection at the insolvency court in the US state of Delaware. This followed the rejection by creditors of a proposed acquisition by competitor Samvardhana Motherson (Noida, Uttar Pradesh, India; www.motherson.com).

The path now being pursued under self-administration is supported by creditors who hold around 80% of the total debt, which amounts to just under EUR 4 bn. Some form of debt relief is expected. At the same time, the group – which, according to CEO David Slump, does not expect “any operational consequences” from the bankruptcy filing – has secured so-called debtor-in-possession interim financing of USD 1.1 bn (just under EUR 960 mn).

Related: Samvardhana Motherson to buy control of Honda unit Yachiyo

Recently, the Indian automotive supplier Samvardhana Motherson had expressed interest in acquiring Marelli and submitted an offer to its owner, private equity firm Kohlberg Kravis Roberts & Co (Europe: London; www.kkr.com). At the same time, Marelli announced that it was in talks with lenders to secure fresh liquidity in order to “bridge a temporary working capital shortfall”.