(MENAFN) US unit of Takata Corp. has come to a settlement with its creditors, lawyers for those injured by its deadly air bags and automakers that smoothes the way to end its Chapter 11 bankruptcy and sell its viable operations.
The Japanese company's airbags could explode with excessive force and have been associated with over 21 deaths and several injuries, causing the largest recall in automotive history and forcing the company and its US unit, TK Holdings Inc, into bankruptcy.
The US unit was preparing for a court fight starting on Tuesday to get approval for its plan to leave behind bankruptcy over the opposition of a committee for injured drivers and a separate committee of unsecured creditors.
Based on the deal, a trust will be established to pay compensation for those injured or killed by the air bags, which will be funded in part by automakers surrendering some of their claims against Takata.
MENAFN1202201800450000ID1096455503
Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.