Struggling Japanese airbag maker Takata has filed for bankruptcy protection in a Tokyo court, following massive recalls of its products around the world.
The decision came at a board meeting on Monday morning.
Takata posted a net loss of more than 700 million dollars for the last fiscal year due to the recalls.
The company’s liabilities exceed 1 trillion yen, or about 9 billion dollars. They include the costs of recalls, which were shouldered by automakers. A corporate failure with liabilities of more than 1 trillion yen is the largest ever for a Japanese manufacturer.
Takata said it has reached a basic deal to transfer its operations to US auto parts maker Key Safety Systems for about 1.6 billion dollars.
Takata airbags have been subject to recalls since 2013. Since then, costs have been ballooning, and Takata has had a difficult time restructuring on its own.
US transport authorities and other sources say Takata airbags were responsible for at least 11 deaths.
Two people have been injured in Japan.
By Africafrique and agencies