Takata settles air-bag claims
Takata Corp has reached a settlement with two groups representing victims of its faulty air bags, paving the way for the company to exit Chapter 11 bankruptcy
and move forward with a reorganisation plan, according to court documents.
Posted on 12 February, 2018
Two committees for people suing over the air bags have agreed to support a bankruptcy-exit plan that would resolve lawsuits by channeling them into a trust funded in part by the sale of Takata assets.
Takata was forced into bankruptcy amid lawsuits, multimillion-dollar fines and crushing recall costs involving the air bags.
Thirteen automakers have joined the agreement, including General Motors and Ford Motor Co. and Toyota Motor Corp. The manufacturers, which are both Takata's largest customers and biggest creditors, are indemnified in their agreements with Takata from losses and liabilities related to the air bag inflators.