Takata, injured drivers reach deal to end U.S. bankruptcy and sell viable operations

takata

Takata Corp’s U.S. unit  has reached a settlement with its creditors, lawyers for victims injured by its deadly air bags and automakers that paves the way to end its Chapter 11 bankruptcy and sell its viable operations, according to court papers.

The Japanese company’s air bags can explode with too much force and have been linked to at least 21 deaths and hundreds of injuries, prompting the largest recall in automotive history and forcing Takata and its U.S. unit, TK Holdings Inc, into bankruptcy.

The U.S. unit was gearing up for a court fight starting on Tuesday to get approval for its plan to exit bankruptcy over the opposition of a committee for injured drivers and a separate committee of unsecured creditors.

But those two committees, automakers and Key Safety Systems, which is acquiring the viable business lines of Takata, reached a deal that resolves the biggest objections to the plan, according to court documents sighted  on Saturday.

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