Takata will seek bankruptcy protection from creditors on Monday, two sources said, as the Japanese company faces billions of dollars in liabilities stemming from the biggest recall in automotive history.
The Japanese company, whose defective air-bag inflators have been blamed for at least 16 deaths and more than 150 injuries worldwide, will file for protection in Tokyo District Court under the Civil Rehabilitation Act, Japan’s version of U.S. Chapter 11 bankruptcy, said the sources, one of whom has direct knowledge of the matter and one who was briefed on the process.
Takata will then seek bridge loans from the core banking unit of Sumitomo Mitsui Financial Group, which will provide tens of billions of yen (hundreds of millions of dollars) in bridge loans, one source said.
Takata spokesman Toyohiro Hishikawa said nothing has been decided regarding any filing or financing.
($1 = 111.0900 yen)
Takata to file for bankruptcy Monday, SMBC to provide bridge loan – sources