Creditors of bankrupt Takata Corp say that the parts maker owes them more than $30 billion after the automotive industry’s biggest recall over its faulty air bags — many times more than the company can repay, Reuters reported yesterday. In the biggest bankruptcy of a Japanese manufacturer, Takata sought court protection from creditors in June as costs and liabilities mounted from almost a decade of recalls and lawsuits. Its air bag inflators have been linked to at least 18 deaths and 180 injuries around the world because they can rupture and shoot metal fragments into vehicles. Takata’s creditors, including automakers such as Honda Motor Co., banks and bondholders, are seeking 3.77 trillion yen ($33.3 billion) from the supplier, mostly to cover recall costs, according to the filing outlining the company’s debt obligations, which hasn’t been made public. Takata had cash and securities worth just 78 billion yen at end-March - equivalent to just 2 percent of the sum creditors are seeking. It also had tangible assets such as buildings and machinery worth 93 billion yen, but much of these went to the company’s purchaser and the rest is needed to make replacement inflators to supply the recalls.
