TK Holdings, Inc., a subsidiary of Takata Corporation, and eleven (11) of its subsidiaries and affiliates have filed petitions for relief under Chapter 11 in the Bankruptcy Court for the District of Delaware (Lead Case No. 17-11375). The First Day Declaration cites the massive recall (over 124,000,000 units worldwide) of Takada’s phase-stabilized ammonium nitrate airbag inflators as the primary cause of its filing. The First Day Declaration also explains that Takata Corporation (TKJP) and its Japanese subsidiaries will be commencing proceedings under the Civil Rehabilitation Act of Japan in the Tokyo District Court. According to a press release on June 25, TKJP and TK Holdings have reached an agreement in principle for the sale of substantially all of their assets to Key Safety Systems, headquartered in Sterling Heights, MI, for approximately $1.588 billion. Prime Clerk, LLC is the proposed claims and noticing agent. The cases have been assigned to the Honorable Brendan Linehan Shannon.
Contact Norman L. Pernick and Nicholas J. Brannick for more information.