Takata stock falls 69% to record low

196

Signage for Takata Corp. are displayed at the company’s Hikone plant in Hikone, Shiga, Japan, on Friday, Nov. 25, 2016. Takata’s selection of a bidder is running behind schedule as the shortlisted companies embark on a more thorough review of the air-bag maker behind the biggest auto safety recall, according to people familiar with the matter. Photographer: Buddhika Weerasinghe/Bloomberg Photo credit: Bloomberg

Takata Corp. shares tumbled as much as 69 percent to a record low as the Tokyo Stock Exchange removed daily limits on the stock’s price declines following the company’s bankruptcy protection filings in Japan and the U.S.

The stock traded at 35 yen as of 11:21 a.m. in Tokyo trading. Shares of the airbag maker have slumped 91 percent since June 16, when they were suspended after media reported the company was preparing to seek protection from creditors.

Takata filed for protection in the U.S. on June 25. It received U.S. court approval on Tuesday of so-called first-day requests, which included interim permission to pay vendors it deemed critical, as well as employee salaries. Key Safety Systems Inc. agreed to buy the company for $ 1.6 billion.

Takata’s bankruptcy, the biggest by a Japanese manufacturer in the postwar period, signals the end for an 84-year-old company that began as a textile maker and supplied parachutes to the Imperial Japanese Army during World War II. It conducted an initial public offering in 2006, and the shares were worth 5,160 yen each at their peak. The Tokyo exchange will delist the company on July 27.

The company buckled under the weight of more than $ 10 billion in liabilities tied to the recalls of faulty airbags that can explode with too much force, spraying metal shards at vehicle occupants. The devices have been linked to at least 17 deaths worldwide. Claims against Takata listed in its filings include individuals who have brought class-action lawsuits and automakers seeking reimbursement for recall costs.

Let’s block ads! (Why?)

Automotive News Supplier News Feed

Get real time updates directly on you device, subscribe now.

Subscribe to our newsletter
Sign up here to get the latest news, updates and special offers delivered directly to your inbox.
You can unsubscribe at any time
You might also like

Leave A Reply

This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Accept Read More