Tags: Takata | air-bag | bankruptcy | automobiles

WSJ: Takata May Seek Bankruptcy Protection as Air-Bag Recalls Weigh

WSJ: Takata May Seek Bankruptcy Protection as Air-Bag Recalls Weigh

 (Dreamstime)

By    |   Friday, 07 October 2016 10:44 AM

Takata Corp., a Japanese maker of air bags that were blamed for deaths and injuries to car passengers, is considering whether to file for U.S. bankruptcy protection as a way to cope with recall costs and to prepare for a company sale.

“Advisers to a steering committee representing Takata consider a U.S. bankruptcy court as a possible venue for helping the company negotiate an accord with auto makers on sharing recall costs that are expected to total billions of dollars,” The Wall Street Journal reported, citing unnamed sources.

Takata’s faulty air bags exploded and shot metallic shrapnel into cars, allegedly killing more than a dozen people and injuring more than 100 victims globally, according to the newspaper. The U.S. Department of Justice opened a criminal inquiry into the company’s handling of the safety devices.

Air-bag recalls in the U.S. may reach 70 million, while the global cost of recalls could be more than $12 billion, according to a Jefferies Group LLC analysis cited by the newspaper. Takata has about 20 percent of the global air-bag market and is supplying replacement kits to car dealers to make repairs.

Takata enlisted the help of bankers from Lazard Ltd. to consider takeover bids from private-equity firms and automotive suppliers who want to avoid product liability claims weighing on the Japanese company.

“Takata’s bidders include buyout firms KKR & Co. and Bain Capital, the latter teaming with air-bag inflater maker Daicel Corp.,” according to the WSJ, citing people familiar with the talks. “Air-bag makers Autoliv Inc. and Key Safety Systems Inc., and bumper producer Flex-N-Gate Corp., have also bid.”

 

 

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Takata Corp., a Japanese maker of air bags that were blamed for deaths and injuries to car passengers, is considering whether to file for U.S. bankruptcy protection as a way to cope with recall costs and to prepare for a company sale.
Takata, air-bag, bankruptcy, automobiles
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2016-44-07
Friday, 07 October 2016 10:44 AM
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