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Technology

Takata reportedly planning to file for bankruptcy

Takata’s board is convening to review bankruptcy plans over the weekend, The Wall Street Journal reported, citing sources.

The company is planning bankruptcy filings in both the U.S. and Japan, and has tentative plans to sell operations to rival firm Key Safety Systems for $1.6 billion, sources told the Journal.

Sumitomo Mitsui Banking is reportedly providing the company with bankruptcy financing, the report said.

The auto parts supplier made the airbag components that spawned lawsuits against several major automakers after the devices were linked to deaths and injuries. The company pleaded guilty to criminal wrongdoing and was told to pay $1 billion in penalties for giving automakers misleading safety reports on the airbag systems.

In the U.S., 19 automakers are still recalling the 42 million vehicles outfitted with Takata airbags, the Journal said.

In May, Toyota, Subaru, Mazda and BMW all settled with plaintiffs for more than $550 million.

Read the full story in The Wall Street Journal

Source: Tech CNBC
Takata reportedly planning to file for bankruptcy

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