Takata Said to Decide on Bankruptcy Protection on Liabilities

Takata Said to Decide on Bankruptcy Protection on Liabilities

Takata Said to Decide on Bankruptcy Protection on Liabilities

Takata, a global supplier of automative safety systems such as seat belts, air bags and child seats, filed for bankruptcy protection in the USA and Japan and announced it would be bought for $1.6bn by Key Safety Systems.

According to the Tokyo Shoko Research Ltd, the company is now sitting atop of 1.7 trillion yen worth of liabilities or $15 billion. Nine of the 11 USA deaths have been reported in 2001-2003 model Honda and Acura vehicles The engineer's July 18, 2013 email, originally written in Japanese and translated by Honda, is part of an exchange with a colleague at the automaker.

Seko, speaking to reporters, said he asked ministry officials to devise a scheme to provide 100 percent loan guarantees to small businesses that may be affected by Takata's bankruptcy.

Jefferies Group LLC has put the total cost at ¥1.28 trillion ($11.5 billion), while Tokyo Shoko Research estimates ¥1.7 trillion; people familiar with the matter have told Bloomberg News that a worst-case scenario would run to $24 billion. Filing for Chapter 11 bankruptcy protection will protect Takata from creditors and clears the way for it to receive financial support from Key Safety Systems, a Chinese-owned company based in MI.

Around US$1 billion from the sale to KSS is expected to be directed at settling criminal charges in the US.

After absorbing Takata's assets, Key Safety Systems will have about 60,000 employees in 23 countries.

Key Safety also plans to retain all Takata employees and maintain operations in Japan, including the opening of a new regional headquarters in Tokyo. Currently, these carmakers have borne the major brunt of the recall and replacement costs. "This agreement would allow that to continue".

"Filing for bankruptcy is going to protect Takata financially, but it's not going to protect drivers who have been injured or are going to be injured", Morrison said.

Takata will essentially be divided into two companies. And second, they are manufactured with a desiccant additive to keep them dry.

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That figure is not expected to increase because of Takata's bankruptcy, Kachi said.

Founded in 1933 in Japan, it used weaving technology to manufacture lifelines for parachutes and other textiles. It will complete the stunning collapse of one of the world's largest suppliers of auto safety systems but should not affect the repairs in the ongoing phased recall. There have been reports of the uncollected air bags being recycled into used cars and causing explosions.

The National Highway Traffic Safety Administration (NHTSA) has repeatedly said it was taking action to speed up the course of the repairs.

In 1991, Takata opened a research and development center in Auburn Hills, Mich., where its USA headquarters operates.

November 2008: Honda orders a recall of 4,000 vehicles equipped with possibly defective air bags. From there, as manufacturers and regulators dug into the issue, the recalls swelled and automakers scrambled to understand the scope of the problem.

Takata agreed in January to plead guilty in the U.S. to wire fraud for providing false data to safety regulators.

"By the grace of God I drive the vehicle every day, just like every other person that has these vehicles, because we don't have an option", she said.

The U.S. Justice Department has also charged Takata executives Shinichi Tanaka, Hideo Nakajima and Tsuneo Chikaraishi with one count of conspiracy to commit wire fraud and five counts of wire fraud in an indictment was unsealed on January 13.

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