Creditors of bankrupt airbag supplier Takata are owed more than it can repay, a media report said.
A court filing seen by Reuters showed the supplier owes over US$30bn after the automotive industry's biggest recall over its faulty air bags.
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The news agency noted that, after a record bankruptcy for a Japanese manufacturer, Takata last June sought court protection from creditors as costs and liabilities mounted from almost a decade of recalls and lawsuits.
The filing said Takata's creditors, including automakers, banks and bondholders, want JPY3.77 trillion ($33.3bn) from the supplier, mostly to cover recall costs.
But Takata had cash and securities worth just JPY78bn at the end of March – equivalent to just 2% of what creditors seek, Reuters said. It also had assets such as buildings and machinery worth JPY93bn but much of that went to the company's purchaser (Key Safety Systems) while the rest was needed to make replacement inflators to supply the recalls.
Reuters noted, citing a filing to the Tokyo District Court, that, as part of Takata's bankruptcy restructuring plan, its steering committee recognised debts of JPY1.05 trillion ($9.26bn), accepting just JPY600bn in recall related costs.
Takata aims to file its restructuring plan to that court by 27 November, Reuters said.
