This is a lifeline for Marelli, but it’s also a sign of how messy big bankruptcies can get. The company needs cash to stay afloat while it figures out how to reorganize, but even that process hit a snag when regulators questioned parts of the financing. For workers, suppliers, and customers, it’s a reminder that the road to recovery isn’t always smooth—even with half a billion dollars in hand.

Bankrupt auto-parts supplier Marelli Holdings Co. won court approval to borrow $518.9 million to help fund its reorganization after delaying a request for some parts of a financing package questioned by a federal bankruptcy watchdog.

Marelli Holdings, an auto-parts supplier currently in bankruptcy, just got the green light to borrow nearly $519 million to keep operations running while it restructures. The court approved the loan after some delays caused by concerns raised by a federal bankruptcy watchdog.

Marelli Approved to Borrow $519 Million at Start of Bankruptcy

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