Tokyo — Takata shares dived 16.5% on Monday in response to news reports that the troubled airbag maker is planning to file for bankruptcy. The stock in the finished the day at ¥404 ($3.60), tumbling by its maximum daily loss limit on the Tokyo Stock Exchange. The supplier was expected to seek protection in its home country first, with its US subsidiary filing for Chapter 11 bankruptcy shortly thereafter, a person familiar with the matter said last week. Bankruptcy filings would put Takata a step closer to a sale to Key Safety Systems, the US airbag maker owned by China’s Ningbo Joyson Electronic. A Takata steering committee has recommended Key Safety as the preferred bidder for the manufacturer of faulty airbag inflators linked to at least 17 deaths worldwide. Mounting liabilities from having to replace more than 100-million of the devices forced Takata to seek an acquirer that could help see through a costly restructuring. Takata had not made a decision on court-led restructuring a...
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