Takata Rules Out Bankruptcy Option

Takata Corp. has ruled out bankruptcy to mitigate liabilities associated with the recalls of more than 100 million of its airbag inflators, according to Bloomberg News.

A source tells the news service that Takata aims to sell a controlling stake in itself to buyers who can lead a turnaround. The company reportedly is flexible about restructuring as long as it can continue to supply replacement inflators in a stable manner.

The search for investors is being led by Lazard Freres & Co. LLC. One analyst notes there is no advantage to Takata’s carmaking customers in a bankruptcy, because the companies must replace the defective inflators anyway.

Negotiations center how how much of the recall cost Takata will pay, Bloomberg says.