Key safety systems bankruptcy

key safety systems bankruptcy

TOKYO (Reuters) - Auto components maker Key Safety Systems completed on Wednesday a $ billion deal to acquire air-bag maker Takata Corp, whose faulty inflators triggered the auto industry’s. Jun 26,  · TOKYO — Takata, the airbag manufacturer at the center of the world’s largest auto safety recall, filed for Chapter 11 bankruptcy in the United States on Sunday and said it . Beleaguered Japanese airbag supplier Takata filed for bankruptcy Sunday night in the U.S. and Japan, saying it also has reached a deal to sell most of its assets to Sterling Heights-based Key.

Unlike other airbag makers, Takata uses the explosive chemical ammonium nitrate to inflate air bags, but it can deteriorate over time and burn too fast, especially in humid conditions. Takata said it plans to wind down those plants. Takata has admitted that company employees knew about the potential problems with its airbag inflators as early as Founded in in Japan, it used weaving technology to manufacturer lifelines for parachutes and other textiles.

Eventually, it grew into one of the world's largest seat belt and airbag suppliers. Nearly every global automaker — including Asian, German and U. The National Highway Traffic Safety Administration, in a website dedicated solely to Takata's recalls , lists 34 automotive brands from Acura to Volkswagen and vehicles from model years Problems began to emerge in when Honda recalled 4, Accords and Civics.

From there, as manufacturers and regulators dug into the issue, the recalls swelled and automakers scrambled to understand the scope of the problem.

The U. Justice Department has also charged Takata executives Shinichi Tanaka, Hideo Nakajima and Tsuneo Chikaraishi with one count of conspiracy to commit wire fraud and five counts of wire fraud in an indictment was unsealed on Jan. Those defendants reside in Japan and have not appeared in a U. Last year, Takata hired investment bank Lazard to lead a financial restructuring in an effort to reduce the impact of the recalls. But by February, Key Safety Systems emerged as the favorite.

Founded in , Ningbo Joyson has been growing rapidly through acquisitions since Contact Brent Snavely: or bsnavely freepress. Follow him on Twitter BrentSnavely. The Associated Press contributed to this report. Share This Story! Post to Facebook. Check out this story on Freep. Cancel Send. Comments Welcome to our new and improved comments , which are for subscribers only. The company has struggled to churn out replacement parts after a global recall of tens of millions of inflators.

In it pleaded guilty to criminal wrongdoing over its inflators, including submitting false inflator test results to automaker clients to induce them to buy its defective products. As part of its bankruptcy, Takata has been broken down into three parts: one holding its good assets, including operations for seat belts and other safety systems which were acquired by KSS; operations to manufacture replacement inflators until the global recall is complete; and an entity which will oversee claim payments and be wound down eventually.

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