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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.
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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.
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