KKR & Co.-owned parts supplier Marelli Holdings Co. will file to renegotiate its debts with Mizuho Financial Group Inc. and other lenders via an alternative dispute resolution in Japan on Tuesday, people with knowledge of the matter said.
The auto parts company, created in 2019 when KKR merged its Calsonic Kansei and Magneti Marelli units, will continue to operate while working with creditors on a reorganization, said the people, who asked not to be identified because the information isn’t public. The first meeting among the lenders is set for March 7, they said.
Marelli, a key supplier for automakers Nissan Motor Co. and Stellantis NV, had at least ¥1.1 trillion ($9.5 billion) in total debt as of September, according to people with knowledge of the finances. Marelli and Mizuho aim to deliver specific details about the ADR-based reorganization in April, and secure agreement from all lenders in May, they said. If they fail to agree on a restructuring plan, Marelli could face a court-led debt-resolution procedure, which could force the lenders to write off all or part of their loans to the auto parts supplier.