Japanese airbag maker Takata Corp. has filed for bankruptcy and had agreed to be largely acquired by Key Safety Systems based in the US.
At the time of filing for bankruptcy protection, Takata's debts exceeded $9 billion. During the bankruptcy proceedings, the company will be reorganized with support by Key Safety Systems. TK Holdings, a contractor of Takata, also filed for bankruptcy.
The reason for bankruptcy is the largest car recall in the history of the automobile industry. Defective Takata airbags led to the death of at least 17 people, and were also responsible for at least 180 injuries. The Japanese manufacturer fully admitted its guilt: so far more than 100 million airbags were replaced.
In January, Takata agreed to pay $1 billion to the US supervisory bodies, automakers and car buyers with defective airbags. Takata already has paid $125 million into a fund for victims and a $25 million fine to the US Justice Department. By 2018, Takata should pay another $850 million to automakers to cover their costs of the recalls.
