Tokyo — Japan’s Takata, the company at the centre of the car industry’s biggest product recall, has filed for bankruptcy protection in the US and Japan. US-based Key Safety Systems is buying the company for $1.6bn. In the biggest bankruptcy of a Japanese manufacturer, Takata faces tens of billions of dollars in costs and liabilities resulting from almost a decade of recalls and lawsuits. Its airbags have been linked to at least 17 deaths around the world. TK Holdings, its US operations, filed Chapter 11 bankruptcy in Delaware on Sunday with liabilities of $10bn-$50bn, while the Japanese parent filed for protection with the Tokyo District Court early on Monday. Takata’s total liabilities stand at ¥1.7-trillion ($15bn), Tokyo Shoko Research estimates. Final liabilities would depend on the outcome of discussions with car maker customers who have borne the bulk of the replacement costs, a lawyer for the company said. The filings open the door to the financial rescue by Key Safety System...
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