Takata Takes a Closer Look at Bankruptcy

Takata Corp. intends to use New York City bankruptcy specialist law firm Weil Gotshal & Manges LLP to help it assess a possible sale or bankruptcy, according to media reports.

The Wall Street Journal reported in March that the struggling airbag supplier had hired Weil Gotshal for unspecified purposes. The Journal noted at the time that the firm has been involved in five of the largest bankruptcies in the U.S., including General Motors and Lehman Brothers.

Takata is weighing five bids from would-be financial saviors, all of which raise the option of bankruptcy. The company faces potential liability for an undetermined share of tens of billions of dollars in costs associated with recalls by more than a dozen carmakers of some 100 million faulty Takata airbag inflators.

Takata has agreed to pay a $70 million fine for deceiving U.S. safety regulators about the faulty inflators. The penalty could grow to $200 million if officials find evidence of additional wrongdoing. But so far the company’s carmaker customers haven’t demanded that Takata pay for at least a portion of recall costs themselves.