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Takata Bankruptcy Filing Due on Monday
Airbag maker Takata Corp. will file for bankruptcy protection in Tokyo on June 26, sources tell Reuters.
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Airbag maker Takata Corp. will file for bankruptcy protection in Tokyo on June 26, sources tell Reuters.
The company is expected to secure tens of billions of yen (several hundred million dollars) in bridge loans from a unit of Sumitomo Mitsui Financial Group with which to maintain operations during restructuring, the news service says. The company also will file for Chapter 11 bankruptcy protection for TK Holdings Inc., its U.S. unit.
The filings would coincide with a Takata deal to sell its airbag inflator business to U.S.-based Key Safety Systems Inc. for a reported 180 billion yen ($1.6 billion). The company would phase out of the airbag business when current supply contracts expire.
Exploding Takata airbag inflators have been blamed for 16 fatalities and dozens of serious injuries worldwide. About 100 million of the defective devices are being recalled worldwide by 19 carmakers, leaving the supplier with huge potential liabilities.
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