Latest News
- Mahindra 3XO SUV Latest Teaser Reveals Connected Car Tech: All Details Here
- Aprilia Tuareg 660 Launched In India At Rs 18.85 Lakh – New Features & More
- ISRO Innovates with Lightweight Carbon Nozzle to Boost Rocket Efficiency
- Exploring Iceland By Car: 8 Unforgettable Routes Through The Land of Fire and Ice
- India Sets Sights on Domestic Bullet Train Production, Aiming for High-Speed Revolution
- Traffic Incoming! Hebbal Flyover's Up-Ramp In Bengaluru Closed To Vehicles Except Two-Wheelers
- AC Schnitzer Boosted BMW X5 Is Powerful & Subtle At The Same Time
- MG Gloster Sets New Standards With Zero Maintenance Ownership Experience Program
- Yamaha Aerox 155 Version S Launched In India At Rs 1.51 Lakh
- Suzuki Hayabusa 25th Anniversary Edition Launched In India At Rs 17.70 Lakh
Takata Corp Might Be In Bigger Trouble Than Expected — Bidders Looking For Bankruptcy
Takata Corp, the Japanese airbag manufacturer seems to be in big trouble as the company is looking to sell itself to a rescuer. It was expected to happen by this year-end, but looks like it is likely to extend to the next year as some bidders are looking to drag Takata to bankruptcy, so that most of its debts are wiped out.
But again, some creditors like Honda could resist any bailouts that involves bankruptcy because they would have to undergo huge loses. People with the knowledge of the matter have revealed these details and have also declined to be identified as this is a sensitive matter.
According to market estimates, Takata faces around $10 billion in costs to recall and fix faulty airbags. The airbag maker also faces legal liabilities as the faulty airbags are linked to at least 14 deaths.
Being given a very ambitious timeline, Takata hopes to name a sponsor next month, but an investor is unlikely to be confirmed until Takata files for bankruptcy. Bidders include Daicel Corp in partnership with US buyout firm Bain Capital, and US air bag maker Key Safety Systems which is likely to team up with US private equity firm Carlyle Group LP.
Takata needs an investor to help restructure its business. The Japanese airbag maker's stock has fallen almost 90 percent since its faulty airbag inflator issue came to light. Lawyers who specialize in corporate restructuring say Takata can find an investor if the company files for bankruptcy.