Sep 21, 2016

    Takata to go into bankruptcy? Share price dives


    TAKATA shares plunged yesterday after a report said some potential buyers were considering bankruptcy proceedings for the embattled airbag supplier, which has been hit by the car industry's biggest-ever safety recall.

    The Tokyo-listed firm fell nearly 15 per cent in morning trade after Bloomberg News said private-equity firms and car parts makers are preparing offers for the company, and that some are considering the drastic bankruptcy action to mitigate the liabilities.

    Earlier reports had said Takata would take bids this week from suitors, including United States investment funds Kohlberg Kravis Roberts, Carlyle Group and Bain Capital, as well as Japanese parts manufacturer Daicel.

    Takata will narrow down the list of possible buyers to one or two by next month with a restructuring plan due by the end of this year, Japan's Jiji Press news agency said.

    Some 100 million Takata airbags have been recalled.

    The firm is facing lawsuits, investigations and huge compensation costs over a defect.

    The flaw can send metal and plastic shrapnel from the inflator canister hurtling towards drivers and passengers when an airbag is deployed.