Takata Corp. creditors claims that the company owes more than $30 billion following the biggest recall over faulty air bags which is incredibly more than they are able to pay up. The parts maker is suffering from the biggest bankruptcy ever and was looking for court protection from creditors in June as costs and liabilities piled up from almost 10 years of recalls and lawsuits. Takata’s air bag inflators have caused at least 18 deaths and 180 injuries around the world due to rupture and shooting of metal fragments into vehicles.
Creditors including banks and bondholders as well as other automakers like Honda are seeking $33.3 billion from Takata. This amount would likely cover recall costs that outlines Takata’s debt obligations. Last March, the automaker already had cash and securities worth about 78 billion yen which is only 2% of the sum that creditors were seeking. The automaker also owned tangible assets such as machinery and buildings totaling to 93 billion yen. However, much of this amount went towards Takata’s purchaser while the rest was needed to make replacement inflators to supply recalls.
Takata’s bankruptcy restructuring plan recognizes debts total to $9.26 billion and accepts about 600 billion yen in recall related costs. The automaker is looking to file this plan to court by November 27.