Takata Corp's U.S. unit reached a settlement with its creditors, lawyers for those injured by its deadly air bags and automakers that smoothes the way to end its Chapter 11 bankruptcy and sell its viable operations, according to court papers.
The Japanese company's air bags can explode with too much force and have been linked to at least 21 deaths and hundreds of injuries, prompting the largest recall in automotive history and forcing Takata and its U.S. unit, TK Holdings Inc, into bankruptcy.
The U.S. unit was gearing up for a court fight starting on Tuesday to get approval for its plan to exit bankruptcy over the opposition of a committee for injured drivers and a separate committee of unsecured creditors.
But those two committees, automakers and Key Safety Systems, which is acquiring the viable business lines of Takata, reached a deal that resolves the biggest objections to the plan, according to court documents filed on Saturday.
Under the agreement, a trust will be established to pay compensation for those injured or killed by the air bags, which will be funded in part by automakers surrendering some of their claims against Takata.
The 13 automakers which joined the agreement include General Motors Co, Ford Motor Co, Toyota Motor Corp, and the U.S. affiliates of Honda Motor Co Ltd and Volkswagen AG.
An amended plan of reorganization will be filed with the U.S. Bankruptcy Court soon, according to Takata's U.S. unit.
Tuesday's court hearing had been adjourned to Thursday at the earliest, Takata's U.S. unit said in court papers filed on Sunday.
A spokesman for the U.S. unit and lawyers for the committee of injured drivers did not immediately respond to a request for comment.
The trust will pay compensation based on the injury, ranging from US$10,000 for bruising to US$5 million for death or loss of eyesight, according to court documents.
If the agreement is approved by the Bankruptcy Court in Wilmington, Delaware, injured drivers will be prevented from suing the automakers that joined the agreement.
A lawyer appointed to represent future injured drivers also joined the settlement, as did Key Safety Systems, a unit of China's Ningo Joyson Electric Corp.
Key Safety Systems plans to acquire Takata's viable operations for US$1.6 billion. The proceeds will fund restitution claims for automakers and help pay injury claims as part of a plea deal with the U.S. Department of Justice.
Reuters
Mon Feb 12 2018
A logo of Takata Corp is seen with its display as people are reflected in a window at a showroom for vehicles in Tokyo, Japan on Nov 6, 2015. - REUTERS
KPM pastikan tiada pelajar cemerlang tercicir - Fadhlina
Kementerian Pendidikan (KPM) memberi jaminan isu pelajar cemerlang 10A Sijil Pelajaran Malaysia (SPM) yang belum mendapat tempat untuk melanjutkan pengajian akan diselesaikan.
Heret pelaku ke muka pengadilan
Membahaskan LKAN di Parlimen tanpa mengambil sebarang timdakan susulan daripada hasil penemuan itu tidak akan memperbaiki tatakelola agensi kerajaan.
Nota diplomatik kepada PBB tegaskan kedaulatan Malaysia
Mengesahkan perkara itu, Menteri Luar, Datuk Seri Mohamad Hasan berkata nota diplomatik itu juga turut menjelaskan kedaulatan negara yang merangkumi Sabah dan Sarawak seperti termaktub dalam Perlembagaan.
AWANI Ringkas: Nota diplomatik diserah kepada PBB
Ikuti rangkuman berita utama yang menjadi tumpuan sepanjang hari di Astro AWANI menerusi AWANI Ringkas.
6 cedera hari pertama festival larian lembu di Sepanyol
Seramai enam orang cedera pada hari pertama acara larian lembu tahun ini di Pamplona, Sepanyol, menurut pegawai perubatan pada Ahad.
Tuanku Muhriz sempurnakan Istiadat Perbarisan Pertukaran Panji-Panji 71 Rejimen Semboyan DiRaja
Yang Dipertuan Besar Negeri Sembilan Tuanku Muhriz Tuanku Munawir berkenan menyempurnakan Istiadat Perbarisan Pertukaran Panji-Panji 71 RSDPMB.
Pasangan suami isteri dan anak lelaki nyaris lemas kereta terbabas dalam sungai
Pasangan suami isteri serta anak lelaki mereka berusia tiga tahun nyaris lemas selepas kereta jenis Proton Pesona dinaiki mereka terbabas ke dalam sungai di Jalan Kangar-Alor Setar.
KPT ucap tahniah kejayaan kontinjen negara di AUG 2024
KPT merakamkan ucapan tahniah kepada kontinjen negara yang berjaya melepasi sasaran 35 pingat emas dan menduduki tempat ketiga negara terbaik pada kejohanan Sukan Universiti ASEAN (AUG) 2024.
Demam denggi landa negeri selatan India Karnataka, Delhi pula catat 240 kes
Demam denggi melanda beberapa bahagian di negeri selatan India, Karnataka, dengan hampir tujuh orang disyaki meninggal dunia akibat penyakit itu dan lebih 7,000 kes direkodkan.
Skuasy: Aifa-Aira juara beregu wanita Asia 2024
Gandingan adik beradik, Aifa Azman-Aira Azman menepati ramalan apabila bergelar juara beregu wanita Kejohanan Skuasy Beregu Asia 2024.
Takata, injured drivers reach deal to end U.S. bankruptcy
Takata Corp's U.S. unit reached a settlement with its creditors, lawyers for those injured by its deadly air bags and automakers.