Japanese airbag manufacturer files for bankruptcy

Takata, the Japanese car-parts manufacturer, says it has filed for bankruptcy protection in Japan and the US after faults in its airbags prompted the industry's biggest ever safety recall.Takata is facing lawsuits and huge costs over an airbag defect linked to at least 16 deaths globally.

News reports have said its liabilities would exceed one trillion yen ($9bn).Key Safety Systems, an American car-components manufacturer owned by China's Ningbo Joyson Electronic, will take over Takata, both companies said.

Takata, which is based in Tokyo, will sell its assets and businesses to Key Safety Systems for an estimated $1.588bn, they said.Trading in Takata shares was suspended at the opening of the stock market on Monday after a week of massive volatility and the Tokyo Stock Exchange said it would delist Takata on July 27.

"At a board meeting on June 26, our company decided to begin procedures in filing for bankruptcy protection," Takata said in a statement after making the filing with the Tokyo District Court. It said the court had accepted the measure.

Takata has 12 overseas subsidiaries that have also filed for bankruptcy protection.