Mexican Media Brands
Creditors Seek $33 Billion from Bankrupt Takata
Takata Corp.’s creditors figure the bankrupt company owes them 3.8 trillion yen ($33 billion) to cover the cost of recalling some 125 million defective airbag inflators.
#legal
Share
Takata Corp.’s creditors figure the bankrupt company owes them 3.8 trillion yen ($33 billion) to cover the cost of recalling some 125 million defective airbag inflators.
But their claims are 50 times the 78 billion yen ($686 million) in cash and securities Takata has available, Reuters reports.
Takata sought bankruptcy protection in June. Michigan-based Key Safety Systems Inc. has agreed to buy the company’s assets, excluding its inflator operations, for $1.6 billion.
Takata’s restructuring plan recognizes 1.1 trillion yen ($9.7 billion) in overall debt, including a mere 600 billion yen ($5.3 billion) in recall-related costs, according to Reuters. The news service says Takata plans to file a final restructuring plan to the Tokyo District Court by Nov. 27.
RELATED CONTENT
-
Court Ruling Exposes GM to Punitive Damages Over Ignition Switches
A new ruling by the federal judge who presided over General Motors Corp.’s 2009 bankruptcy could expose post-bankruptcy General Motors Co. to a wave of costly punitive damage awards linked to the company’s defective ignition switches.
-
U.S. Probes Possible Bosch Role in VW Diesel Scandal
The U.S. Dept. of Justice is investigating whether Robert Bosch GmbH aided Volkswagen AG in cheating on diesel emission tests, sources tell Reuters.
-
China Prepares to Sanction U.S. Carmaker for Price Fixing
China is preparing to fine an undisclosed U.S. carmaker for ordering its distributors to fix prices beginning in 2014, according to China Daily. Media reports say General Motors Co. is the target.