Japanese air bag maker, hit by lawsuits, files for bankruptcy

DETROIT — Drowning in a sea of lawsuits and recall costs, Japanese air bag maker Takata Corp. filed Monday for bankruptcy protection in Tokyo and the U.S.

Takata was done in by defective air bag inflators that can explode with too much force, spewing out shrapnel. They’re responsible for at least 16 deaths and 180 injuries and have touched off the largest automotive recall in U.S. history. So far 100 million inflators have been recalled worldwide including 69 million in the U.S., affecting 42 million vehicles.

Takata confirmed that most of its assets will be bought by rival Key Safety Systems, based in suburban Detroit.

Some remnants of Takata will be folded into an entity with a different name to keep manufacturing inflators used as replacement parts in recalls, according to two people briefed on the matter who didn’t want to be identified.

Much of the money from the sale will be used to satisfy Takata’s settlement of criminal charges in the U.S. for concealing problems with the inflators.

Key is owned by Ningbo Joyson Electronic Corp. of China.

One of the people briefed on the filings said that Key would get Takata’s assets “free and clear” of past or future liabilities. That makes it unclear whether anyone injured by inflators in the future would have any legal recourse against either company.

Takata’s woes stem from use of the explosive chemical ammonium nitrate in the inflators to deploy air bags in a crash.

The chemical can deteriorate when exposed to hot and humid air and burn too fast, blowing apart a metal canister.

In February, Takata pleaded guilty to fraud and agreed to the $1 billion settlement.