Roiled by Airbag-Recall Crisis, Takata Files for BankruptcyBy , , , and
Chapter 11 filing lists liabilities of over $10 billion
China-backed Key Safety Systems agrees to buy Takata assets
Takata Corp. filed for bankruptcy protection in the biggest postwar Japanese corporate failure in the manufacturing industry, as the 84-year-old company buckled under liabilities from millions of recalled air bags and agreed to be sold to a Chinese-backed investor.
The Tokyo-based company and its units filed for creditor protection in the U.S. and Japan. The Chapter 11 bankruptcy in Delaware listed more than $10 billion in liabilities, including claims from automakers including Honda Motor Co. -- the biggest user of the air bags -- and Toyota Motor Corp. as well as individuals who have brought class-action lawsuits.