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Takata Rescue Talks Continue
Talks between Takata Corp. and a potential financial savior about bailing out the struggling airbag supplier have been extended beyond an informal April 1 deadline to reach a deal, Reuters says.
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Talks between Takata Corp. and a potential financial savior about bailing out the struggling airbag supplier have been extended beyond an informal April 1 deadline to reach a deal, Reuters says.
U.S.-based Key Safety Systems Inc., backed by Bain Capital LLC, is the favored bidder for Takata. The supplier could face as much as $10 billion in liabilities because of its flawed airbag inflators, which have been linked to at least 16 fatalities worldwide.
The crisis has cut Takata’s stock price 90% in the past three years and threatened the company with collapse. The company denies it is considering any form of bankruptcy in the U.S. or Japan.
Reuters says Key and Bain have described negotiations as “chaotic” as they attempt to define the extent of Takata’s financial exposure. The news service adds that carmakers, who so far have been paying to replace some 70 million Takata inflators, believe a court-ordered restructuring is the only affordable option to save the company.
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