Since the cited story went online, just about everything went nuts with the Tokyo Stock Exchange.
Key Safety Systems is working on a restructuring deal with Takata, and could acquire the latter's operations for around 180 billion yen ($1.6 billion US) and continue producing airbags, seatbelts, and other safety components for the automotive industry.
While Takata's filing for bankruptcy might help the company secure financial banking, it has also become a cause for concern to its clients, which are major global auto manufacturers.
Takata (TKTDY), the Japanese auto parts firm, is expected to file for bankruptcy protection as early as this month, likely representing the largest corporate failure in Japanese manufacturing in the post-war era, Nikkei Asian Review reports.
The Michigan-based corporation, which is controlled by a Chinese supplier going by the name of Ningbo Joyson, refused to comment on the arrangement.
Takata has already paid a $25 million fine and $125 million to a victims' compensation fund, including for future incidents.
Earlier this year an American judge said the costs of replacing all of the faulty Takata inflators could be $8 billion.
Takata Corp, one of the world's biggest automotive suppliers for airbags, is preparing to file for bankruptcy by next week.
In January, Takata agreed to plead guilty to criminal wrongdoing and to pay $1 billion to resolve a U.S. Justice Department investigation into ruptures of its air bag inflators linked to at least 16 deaths worldwide.
Takata airbag inflator recalls are expected to continue through at least the end of 2019.
With more than 65 percent of 46.2-million recalled Takata airbags in the USA still not repaired, the bankruptcy could disrupt the production of replacement airbags inflators.
Last month, four automakers including Toyota and BMW agreed to pay $553 million to settle a U.S. lawsuit over the airbags. "Its cost will reach far beyond Takata, weighing on the financials of almost 20 automakers", Brauer continued. The proceedings for filing of bankruptcy is to begin shortly in the USA and in Japan. Mounting liabilities from having to replace more than 100 million air bags forced the company to seek an acquirer that could get it through the costly restructuring process.