2017.06.2622:17:00UTC+00Takata Files for Bankruptcy Amid Massive Product Recall

Takata Corp., currently faced with the biggest product recall in the auto industry, filed for bankruptcy protection in the U.S. and Japan. It also said it has agreed to be mostly acquired by Chinese-owned Key Safety Systems in a $1.6 billion deal.

The Japanese airbag maker is faced with tens of billions of dollars in costs and liabilities stemming from a decade of recalls and legal actions. The company's airbag inflators have been associated with at least 16 deaths and 180 injuries around the world due to their tendency to explode.

TK Holdings' U.S. operations filed Chapter 11 bankruptcy in Delaware with liabilities of around $10-$40 billion, while the Japanese parent company filed for protection at the Tokyo District Court.

The COO of TK Holdings Scott Caudill stated in a court affidavit that the firm is challenged by unassailable claims liked to recalls had has billions of dollars of debt to carmakers. Its total liabilities stand at 1.7 trillion yen, according to Tokyo Shoko Research Ltd.'s estimates.