Takata Stock Set to Fall After Report on Court-Led Restructuringby and
Takata Corp. shares are set to drop by the daily limit in Tokyo trading after Nikkei newspaper reported that bidders Autoliv Inc. and Key Safety Systems Inc. have proposed Japanese court involvement in the troubled air-bag maker’s debt restructuring.
In a stock exchange filing, Tokyo-based Takata said it’s discussing measures with relevant parties and that no decision has been made on the restructuring plan.
The stock was suspended earlier Thursday after Nikkei’s article, which didn’t cite anyone. The shares are set to fall to the lower limit of 717 yen, which would cut the company’s market value to 60 billion yen ($524 million).
Takata last week admitted to hiding the deadly risks of its air bags for about 15 years and agreed to plead guilty in the U.S. to one criminal charge as part of a $1 billion settlement, according to court papers. Three former Takata executives were separately indicted for their alleged roles in the cover-up.