Tokyo, Japan-based Takata (f/k/a Takata Kojo) and two affiliated Debtors filed for Chapter 15 protection with the U.S. Bankruptcy Court in the District of Delaware, lead case number 17-11713. The Company, which develops, manufactures and sells automotive safety systems and products for automakers, is represented by Robert S. Brady of Young, Conaway, Stargatt & Taylor.
Privately-held Takata Americas and 11 affiliated Debtors filed for Chapter 11 protection on June 25, 2017, listing $3.9 billion in pre-petition assets. Concurrent with the Chapter 11 filings, Takata and two of its Japanese subsidiaries – Takata Kyushi K.K. and Takata Service – commenced civil rehabilitation proceedings under the Civil Rehabilitation Act of Japan in the 20th Department of the Civil Division of the Tokyo District Court. The Takata Americas Debtors also sought recognition of the Chapter 11 cases in Canada as foreign main proceedings under Part IV of the Companies’ Creditors Arrangement Act.
According to documents filed with the Court, “Rehabilitation Debtor Takata Corporation (‘TKJP’) is the subject of a large number of lawsuits in the United States, and is therefore under pressure to respond to these lawsuits. First, in a number of states of the United States, TKJP is the subject of a number of liability claims (the ‘U.S. PI Lawsuits’), both in-court and out-of-court, instituted by persons claiming to have suffered damage due to wrongful deaths or personal injuries caused by defects in airbag modules which contained inflators that used phase-stabilized ammonium nitrate as a propellant (the ‘Airbags’), and which were manufactured and sold by TKJP, its subsidiaries, and its affiliate companies (hereinafter, collectively ‘Takata’). In addition, in a number of states of the United States, TKJP is the subject of class action lawsuits seeking damages etc. based on the fallen economic value of vehicles in which the Airbags were installed, instituted by persons claiming to represent the owners and lessees of vehicles in which the Airbags were installed and used car dealers that sold vehicles in which the Airbags were installed (the ‘U.S. Economic Loss Lawsuits’).”
Read more Takata bankruptcy news.