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Takata faces bankruptcy buyout - report

2016-09-20 07:55

NEW BUYER TO BE SELECTED: Embattled airbag-maker Takata will undergo a bankruptcy buyout. Image: AP / Shizuo Kambayashi

Tokyo - Takata shares dived Tuesday (September 20) after a report said some potential buyers were considering bankruptcy proceedings for the embattled airbag supplier, which has been hit by the auto industry's biggest-ever safety recall.

The Tokyo-listed firm plunged nearly 15% in morning trade after Bloomberg News said private-equity firms and auto parts makers are preparing offers for the company, and some were considering the drastic bankruptcy action to mitigate the liabilities.

It ended the morning 13.23% lower at 367 yen ($3.60).

List of buyers

Earlier reports have also said Takata would take bids from suitors including US investment funds Kohlberg Kravis Roberts & Co (KKR), Carlyle Group and Bain Capital, as well as Japanese parts manufacturer Daicel.

READ: Truck carrying Takata airbag-detonators explodes - 1 killed, 10 houses damaged

Takata will narrow down the list of possible buyers to one or two by October with a restructuring plan due by the end of 2016, Japan's Jiji Press news agency said.

A spokesman for Takata declined to comment on the reports, saying an outside committee is drawing up a restructuring plan for the firm.

Some 100 million Takata airbags have been recalled and the firm is facing lawsuits, investigations and huge compensation costs over a defect that can send metal and plastic shrapnel from the inflator canister hurtling toward drivers and passengers when an airbag is deployed.

READ: Takata facing criminal charges in Japan

The defect has been linked to at least 15 deaths and scores of injuries globally.

Read more on:    takata  |  japan  |  airbags  |  bankruptcy  |  money

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