Takata shares dented by bank­ruptcy

The Myanmar Times - - International Business -

TAKATA shares plunged al­most 11 per­cent yes­ter­day fol­low­ing re­ports that the Ja­panese airbag maker, dented by the auto in­dus­try’s big­gest-ever safety re­call, was con­sid­er­ing fil­ing for bank­ruptcy in the United States.

With Tokyo in­vestors com­ing back from a three-day week­end, the stock tanked in early trad­ing be­fore fin­ish­ing the morn­ing ses­sion at 348 yen (US$3.35), down 7.2 per­cent.

The drop came after the Wall Street Jour­nal said the trou­bled com­pany was “weigh­ing a US bank­ruptcy fil­ing as one op­tion”, as it faces huge com­pen­sa­tion costs over a de­fect linked to 16 deaths and scores of in­juries glob­ally.

The firm may seek court pro­tec­tion only for its US di­vi­sion, Bloomberg News re­ported, cit­ing un­named sources fa­mil­iar with the mat­ter.

More than 100 mil­lion Takata airbags have been re­called due to the de­fect, which can send metal and plas­tic shrap­nel from the in­fla­tor can­is­ter hurtling to­ward driv­ers and pas­sen­gers when an airbag is de­ployed.

The US Na­tional High­way Traf­fic Safety Ad­min­is­tra­tion has said the risk was great­est in hot and hu­mid re­gions of the US. Most of the deaths have been in the US and Malaysia.

Some au­tomak­ers in Ja­pan are wor­ried a bank­ruptcy fil­ing could threaten Takata’s ac­cess to op­er­at­ing funds and dis­rupt their airbag sup­plies, the re­port said. –

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