Mexican Media Brands
Takata Bidders to Seek Court-Led Restructuring in Japan
The two companies bidding to acquire troubled airbag supplier Takata Corp. each will ask for a court-mediated civil rehabilitation in Japan, according to The Nikkei.
#legal
Share
The two companies bidding to acquire troubled airbag supplier Takata Corp. each will ask for a court-mediated civil rehabilitation in Japan, according to The Nikkei.
The companies are Sweden’s Autoliv Inc. and a group led by U.S. supplier Key Safety Systems Inc. They seek a restructuring under Japan’s 17-year-old Civil Rehabilitation Act, in which a recovery scheme becomes legally binding when the court sanctions a plan agreed to by a majority of creditors.
If creditors fail to reach accord, a court-appointed trustee continues to operate the company and either liquidates the business or restructures it under a bankruptcy process. Bidders want court oversight to fix Takata’s obligation to creditors and to handle potential additional legal and victim compensation claims, The Nikkei says.
About 19 carmakers have so far spent some 1.3 trillion yen ($11.4 billion) to replace roughly 100 million Takata airbag inflators—70% of them in the U.S.—that may explode in a crash. The devices have been linked to 15 fatalities and more than 130 injuries worldwide.
RELATED CONTENT
-
Dealers Claim FCA Falsified Sales Reports
Two dealerships outside Chicago have filed a federal lawsuit claiming Fiat Chrysler Automobiles NV offered them cash to report unsold vehicles as sold, Automotive News reports.
-
Tesla Sued Over Fatal Crash of Car in Autopilot Mode
Tesla Inc. has been sued by the family of a California man whose Tesla Model X crossover vehicle crashed into a highway barrier last year while the car was operating in semi-autonomous Autopilot mode.
-
U.S. Justice Dept. Asks VW to Delay Diesel Cheating Report
The U.S. Dept. of Justice has asked Volkswagen AG not to release findings of an independent probe into the German carmaker's diesel emission cheating scandal.