Takata says no decision concerning “legal proceedings” has currently been made as the embattled Japanese supplier struggles to find ways to stave off potential bankruptcy.
The manufacturer has endured a barrage of major problems following a massive recall of airbags and has been working for months on a deal with Key Safety Systems, the US unit of Chinese auto components supplier Ningbo Joyson Electronic to try and shore up its position.
“Although there were a number of articles about Takata in the media referring to legal proceedings, currently no decision of any kind has been made,” said a statement from the supplier sent to just-auto from Japan. “Takata has established an external Steering Committee commissioned with developing a comprehensive restructuring plan to address the various issues related to airbag recalls and has received a recommendation from the Steering Committee regarding Key Safety Systems (KSS) as a potential sponsor.
“Takata has been asking for discussions aimed at ensuring the continued operation of the entire business encompassing employees, suppliers and customer relationships and understands all pertinent automakers have expressed support for this approach.
“Discussions will continue with representatives of KSS, automakers, financial institutions and the Steering Committee regarding the formulation of a restructuring plan for Takata and the Steering Committee intends to present a final proposal to Takata once those discussions have been concluded.
“Takata further understands that, with the aim of maintaining the stable supply of Takata products and supporting and growing the overall enterprise value of the business, all options are being considered, not limited to out-of-court restructuring proceedings.
“Based on the recommendations of the Steering Committee, the Board of Directors plans to make a final decision promptly with respect to restructuring. Any information for disclosure will be announced in due course.”
Takata declined to elaborate any further this morning to just-auto from Tokyo on its current position.