Takata Corporation, the Japanese air-bag maker that is at the center of the auto industry’s biggest ever product recall, decided on Monday to file for bankruptcy protection in Japan with liabilities of more than 1 trillion yen (US$9 billion), according to reports.
The decision came at a special board meeting, Reuters cited Japanese media, including public broadcaster NHK, as saying.
Takata is expected to file for a US Chapter 11-style bankruptcy protection procedure, along with a similar filing in the United States, sources have told Reuters.
This would open the door for a financial rescue from US auto parts supplier Key Safety Systems, which Takata has tapped as its preferred financial sponsor.
Takata has been mired in financial woes in recent years due to costs associated with global recalls of faulty air-bags, which have been linked to at least 17 deaths in the United States and other countries.
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