Takata Hires Lazard as Financial Advisor

Takata Corp. says it has contracted Lazard Freres & Co. LLC to look for investors and guide the company's financial restructuring.

Takata's board set up an independent committee in February to create a restructuring plan. Sources tell Reuters the company also expects by August to have a list of possible financial backers for Lazard to pursue.

The supplier faces billions of dollars in regulatory fines and legal settlements linked to the global recall of roughly 100 million of its airbag inflators by 17 carmakers. Reuters estimates the cost of replacing the inflators alone will be at $9 billion.

Takata’s own financial exposure will hinge heavily upon its proportion of responsibility for the crisis. To date, carmakers have paid for virtually all costs related to recalling and replacing Takata inflators that could explode when triggered. But Takata’s own investigation into the cause turned up multiple contributing factors, including major lapses in the company’s own manufacturing procedures and quality control methods.

Last November Takata agreed to pay a $70 million fine by the U.S National Highway Traffic Safety Administration and could face an additional $130 million for misleading the agency and the company’s carmaker customers about flaws in the inflators.