Scandal-Plagued Airbag Maker Takata Corp. Files for Bankruptcy

Takata Corp. files Chapter 11 after being plagued by the largest auto recall in history.
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Scandal-plagued airbag maker Takata Corp. (TYO) - Get Report filed for bankruptcy in Delaware and Japan late Sunday, June 25, after paying out over $1 billion in fines for the largest auto safety recall in U.S. history.

Takata, whose faulty airbags led to the recall of 42 million cars, said in a statement that excluding costs related to the recalls, the company has "continued to produce healthy profits and cash flows from its existing businesses." Safety technology company Key Safety Systems Inc. (KSS) - Get Report agreed to buy the bulk of Takata's assets for 175 billion yen ($1.588 billion). Japan's Ningbo Joyson Electronics Corp. acquired KSS for $920 million on Feb. 2, 2016.

This article was written by a staff member of TheStreet.