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Takata Hires Restructuring Experts
Japanese airbag supplier Takata Corp. has hired a New York City-based law firm with expertise in restructuring companies as it grapples with recalls of as many as 50 million cars worldwide to replace airbag inflators that might explode.
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Japanese airbag supplier Takata Corp. has hired a New York City-based law firm with expertise in restructuring companies as it grapples with recalls of as many as 50 million cars worldwide to replace airbag inflators that might explode.
It isn’t clear how Takata is using the firm, Weil, Gotshal & Manges LLP. The Wall Street Journal notes the firm has been involved in five of the largest bankruptcies in U.S. history, including Lehman Brothers and General Motors.
Takata has been negotiating with its carmaker customers—virtually all of which say they will no longer buy the company’s airbags—over how to pay for recalls that involve a dozen vehicle manufacturers.
Takata has about $535 million in cash and is trying to sell its auto interiors unit to raise more. The company agreed in November to pay a $70 million fine for misleading U.S. regulators about the inflator problem. The penalty could expand to as much as $200 million if regulators find evidence of additional wrongdoing.
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