Takata Corporation has announced that the US Bankruptcy Court for the District of Delaware  has confirmed the 'Fifth Amended Chapter 11 Plan of Reorganisation' filed by TK Holdings (TKH), Inc.,  Takata's main US subsidiary.

Takata said the confirmation of the plan is a major milestone in the US Chapter 11 Process and the company's comprehensive restructuring, and it paves the way for Takata to complete its previously announced and Court-approved proposed sale to Key Safety Systems (KSS). The sale will be finalized upon TKH's emergence from Chapter 11, which is on target for completion on or about the end of the first quarter of 2018.

The plan was supported by several of TKH's main creditor constituencies, including the Official Committee of Unsecured Creditors, the Official Tort Claimants Committee, the Future Claimants' Representative, and a group of Takata's OEM customers representing more than 80% of the company's annual sales.

"We are very pleased to have reached this important milestone," said Mr. Katsumi Mitsuhashi, President of TKH. "The court's approval of our Plan takes us one step closer to achieving our main objective of developing a path forward for Takata that resolves the costs and liabilities related to airbag inflator recalls. Our top priorities remain providing a steady supply of products to our valued customers, including replacement parts for recalls, and a stable home for our exceptional employees. We look forward to completing the restructuring process on or about the end of this quarter."

Takata and TKH will now turn towards working to satisfy the conditions of the plan and then emerging from Chapter 11 as soon as possible. Under the terms of the Plan, the sale of substantially all of Takata's global assets and operations to KSS will be consummated on the 'effective date of the plan'.

Mr Mitsuhashi added: "We would not have been able to reach this important milestone without the hard work and dedication of Takata's employees around the world who have remained focused on our mission to ensure the adequate, uninterrupted supply of safe, high quality parts and components to our customers. We anticipate a quick and seamless integration with KSS, utilizing the combined strengths of both our teams to implement a smooth transition. We are confident that the combined business will be well positioned for long-term success in the global automotive industry."

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Takata expects to continue to meet demand for airbag inflator replacements without interruption. The restructuring proceedings and sale to KSS should have no effect on the ability of drivers to obtain replacements for recalled Takata airbag inflators free of charge.