de la MERCEDJUNE 16, 2017 TOKYO — Takata, the troubled Japanese airbag maker, is moving to file for bankruptcy protection as soon as next week in preparation for the company to sell itself to a rival, a person briefed on the matter said on Friday.
Key Safety would pay 180 billion yen, or roughly $1.6 billion, the person said.
Such a sale would take place within the confines of Chapter 11 rules in the United States, where Takata would leave the bulk of its liabilities with a legal entity in bankruptcy court while its operations are taken over by Key Safety.
Key Safety has been one of several manufacturers bidding for Takata’s operations, according to people familiar with the process, and has been considered a front-runner.
According to the Nikkei, that money would be used to cover Takata’s liabilities, including projected payouts from accident-related lawsuits, which would be held by a separate legal entity.