Japanese Takata files for bankruptcy

Troubled Japanese car parts maker Takata has filed for bankruptcy protection in the United States and Japan. It faces lawsuits and tens of billions of dollars in costs over an airbag defect linked to at least 17 deaths globally.

"At a board meeting on June 26, our company decided to begin procedures in filing for bankruptcy protection," Takata said in a statement after filing for Chapter 11 bankruptcy protection in the US, with similar action taken in Japan.

Takata's 12 overseas subsidiaries have also filed for bankruptcy protection.

American car parts maker Key Safety Systems (KSS) will take over Takata which will sell its assets and businesses to KSS for an estimated $1.6 billion.

"Although Takata has been impacted by the global airbag recall, the underlying strength of its skilled employee base, geographic reach, and exceptional steering...