Japan's Takata Corp., facing bankruptcy over the biggest recall in automotive history, would stop making air-bag inflators when the global recall is completed, under a plan its steering committee and other major players are considering, sources told Reuters on Friday.
Designated financial sponsor Key Safety Systems Inc. would replace Takata's top brass on an interim basis under the plan, said the sources, one with direct knowledge of talks to restructure the company and one briefed on the talks.
Both spoke on condition of anonymity as the plans remain private.
The plan being considered by Takata's steering committee and KSS to resolve Takata's financial woes would have Takata air bags and seatbelts rebranded as KSS products after the car-parts maker emerges from a bankruptcy meant to erase billions in liabilities.
If the plans are approved by Takata's board, the company will include them in its bankruptcy filings with U.S. and Japanese courts as early as next week to help it cope with the liabilities stemming from its defective air-bag inflators, sources say.
Takata declined to comment in the plans.
The plan, which involves Michigan-based KSS, owned by Chinese supplier Ningbo Joyson Electronic Corp., is critical for resolving the massive recall of air-bag inflators blamed for at least 16 deaths globally when their inflators exploded, spewing shrapnel into the passenger areas.
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