TOKYO (Reuters) – 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 (KSS) 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.
(Reporting by Naomi Tajitsu and Maki Shiraki; Additional
reporting by David Shepardson in Washington; Editing by William