Friday, 16 June 2017

Takata shares suspended ahead of expected bankruptcy

Japanese car parts maker Takata is reported to be preparing to file for bankruptcy after its faulty airbags led to the biggest safety recall in automotive industry.

The filing could come next week in both Japan and the US, where it has a subsidiary and is seeking a buyer.

Shares of Takata were temporarily suspended on the Tokyo stock exchange because of the news.

Takata faces billions of dollars in liabilities over the recall.

So far about 100 million Takata airbags, which can rupture with deadly force and spray shrapnel at passengers, have been recalled globally.
The faulty airbags have been linked to at least a dozen deaths and more than 100 injuries worldwide.

Japan's Nikkei newspaper estimates the firm faces liabilities exceeding 1 trillion yen ($9bn; £7bn).

Takata has not commented on the reports in Japan, from sources close to the case, of imminent bankruptcy.

The company is said to be in talks about a potential deal with US auto parts maker Key Safety Systems. The latter may buy some of its assets under a restructuring plan.

BBC      News.