Takata Seeks Restructuring Leader by August

Takata Corp. hopes by August to select a sponsor to help it avoid financial ruin from the cost of recalling tens of millions of its airbag inflators.

A panel of outside attorneys briefed Takata's customers and bankers about the plan on Tuesday, The Nikkei reports. The newspaper says the scheme will involve the installation of a management team selected by the sponsor and is likely to include the resignation of CEO Shigehisa Takada.

Takata has been pursuing a private remedy rather than a court-run turnaround process to avoid interrupting production of parts needed for the recalls, The Nikkei says. The plan hinges upon Takata's customers—who have declared they will phase out the company's current inflator designs—agreeing to return if Takata gains new management.

But analysts say it may be difficult to find a sponsor because the cost to Takata of the recalls, including legal settlements, isn't clear. Determining how costs should be allocated between Takata and its customers is not yet possible because investigators have failed to pinpoint the definitive cause of the inflator malfunctions. The misfiring devices have killed 11 people and injured more than 130 others.