June 26, 2017 / 12:36 AM / 2 years ago

Key Safety Systems to buy Takata's assets for $1.57 billion

FILE PHOTO: Key Safety Systems Chief Executive Officer Jason Luo poses for a photograph during an interview with Reuters in Tokyo, Japan October 5, 2016. REUTERS/Issei Kato

(Reuters) - Key Safety Systems (KSS) said on Sunday that it had reached a deal with Takata 7312.T to purchase nearly all of its assets for about 175 billion yen ($1.57 billion), after the air-bag maker filed for bankruptcy in the United States and Japan.

KSS said it would retain almost all of Takata’s employees and did not intend to close any of the company’s manufacturing facilities.

Takata, the firm at the center of the auto industry’s biggest ever product recall, said proceeds from the sale would be used to settle a plea agreement with the U.S Department of Justice.

The company added that the bankruptcy proceedings should have no effect on the recall.

The company also said that its Japan unit had also received a commitment for up to a 25 billion yen debtor-in-possession (DIP) financing from Sumitomo Mitsui Banking Corporation.

Faulty air-bag inflators made by the 84-year-old Japanese company have been linked to at least 17 deaths and more than 180 injuries around the world. The ammonium nitrate compound used in the airbags can become volatile with age and prolonged exposure to heat, causing the safety devices to explode.

Reporting by Parikshit Mishra in Bengaluru; Editing by Andrew Hay

0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below