Takata could file for bankruptcy by the end of June

Published: Jun. 20, 2017 at 6:33 AM EDT
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Legal experts say a bankruptcy filing by Japanese air bag maker Takata will leave little money for dozens of people who sued the company over deaths and injuries caused by exploding air bag inflators.

A person briefed on the matter says Takata and its U.S. operations are likely to seek bankruptcy protection by the end of June in a deal that would sell its assets to Key Safety Systems Inc. The person didn't want to be identified because talks are ongoing. Takata says no decision has been made.

Takata inflators can explode with too much force and spew shrapnel. At least 16 people have died worldwide.

One lawyer says victims will get 5 to 10 cents on the dollar compared with what they would get by suing a healthy company.

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