Japanese airbag manufacturing company, Takata, filed for bankruptcy in Japan and in the United States. The company is seeking $1.6 billion from the U.S based company: Key Safety Systems (KSS).
The Takata bankruptcy is one of the biggest bankruptcy's a Japanese company has ever experienced. The company is in billions of dollars of debt after ten years of countless recalls and several lawsuits. Takata's airbags, according to Fox Business, have been the cause of 17 deaths and 180 injuries.
Takata's U.S. branch filed for Chapter 11 bankruptcy with liabilities of $10 billion to $50 billion.
The 84-year-old company is experiencing several recalls to Honda, BMW, Toyota Motor, and several other companies.
Key Safety Systems is now working to relieve Takata from a portion of the debt they company has accumulated. If Takata continues to receive aid from KSS, they will be able to continue manufacturing airbags.
One source states that Takata will be able to replace every recalled airbag while undergoing bankruptcy, but if there is another recall in the company may not survive.
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