Japan’s Takata fi les for bankruptcy, to be bought by China- owned fi rm

Japan’s Takata Corp, the company at the center of the vehicle industry’s largest product recall, fi led for bankruptcy protection in the US and Japan and said it would be bought for $ 1.6 billion by US- based Key Safety Systems ( KSS), which is owned by a Chinese company.

In the biggest bankruptcy of a Japanese manufacturer, Takata faces tens of billions of dollars in costs and liabilities resulting from almost a decade of recalls and lawsuits.

Its airbags have been linked to at least 17 deaths globally.

TK Holdings, its US operations, fi led Chapter 11 bankruptcy in the US state of Delaware on Sunday with liabilities of $ 10 billion to $ 50 billion, while the Japanese parent fi led for protection with the Tokyo District Court early on Monday.

Takata’s total liabilities stand at 1.7 trillion yen ($ 15 billion), Tokyo Shoko Research estimated.

Final liabilities depend on the outcome of talks with carmaker customers who have borne the bulk of the replacement costs, a lawyer for the company said.

The fi lings open the door to the fi nancial rescue by KSS, a Michigan- based parts supplier owned by China’s Ningbo Joyson Electronic Corp.

KSS agreed to take over Takata’s viable operations. The remaining operations will be re- organized continue making replacement airbag inflators, the two companies said

KSS would keep "substantially all” of Takata’s 60,000 employees in 23 countries and maintain its factories in Japan. the agreement allow takata to is meant to continue operating without interruptions and with minimal disruptions to its supply chain

KSS CEO Jason luo said in a statement that the underlying strength” of Takata's business had not diminis shed despite the airbag recall.