Marelli’s proposed reorganization would cancel existing Common Stock Interests without a distribution, while lenders have put former Audi CEO Abraham (“Bram”) Schot forward as chair after a Chapter 11 exit, subject to restructuring conditions.
The Ad Hoc Group of Marelli Lenders announced the proposal Thursday, Nov. 5. It said Schot would support CEO Laurent Favre and the company’s leadership team, citing his board experience. The group said Schot held senior automotive roles across Mercedes-Benz and Volkswagen Group for more than three decades; Shell lists him as an Independent Non-executive Deputy Chairman. Schot said the team’s focus would be to “deliver on our commitments” and strengthen customer partnerships.
Marelli said Favre assumed the chief executive role immediately Thursday, Nov. 5, succeeding interim CEO Frederick “Fritz” Henderson. The company said Favre would oversee the business as it moves toward a bankruptcy exit and works on its next transformation phase.
Under the amended plan, nonparticipating senior lenders would receive cash equal to 11% of specified allowed claim amounts. The calculation includes principal, listed accrued interest, fees and other obligations through June 10, 2025, the day before the bankruptcy filing. The plan defines participating senior lenders as those also serving as DIP lenders; they would waive recovery on their senior loan claims.
Marelli’s amended disclosure statement says holders of about 80% of senior loan claims support the plan. The Ad Hoc Group includes investment funds managed by Strategic Value Partners and MBK Partners, funds managed by Fortress Investment Group affiliates, Deutsche Bank and Polus Capital Management.
Marelli filed for Chapter 11 protection on June 11, 2025, in the U.S. Bankruptcy Court for the District of Delaware to restructure long-term debt. The amended disclosure statement says approval of the disclosure statement does not itself approve the reorganization plan, which remains subject to confirmation and effectiveness conditions.
The deadline for creditor votes and plan objections is Nov. 23 at 4 p.m. ET. A confirmation hearing is scheduled for Dec. 8 at 10 a.m. ET.
