Exploding airbags: Takata shares plummet seventeen percent on bankruptcy reports

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Source:   —  June 19, 2017, at 5:12 AM

Shares in the Japanese auto parts company plunged seventeen percent on Monday following multiple reports that its exploding airbags scandal may soon drive it into bankruptcy.

Exploding airbags: Takata shares plummet seventeen percent on bankruptcy reports

Takata could be nearing the finish of the road.

Shares in the Japanese auto parts company plunged seventeen percent on Monday following multiple reports that its exploding airbags scandal may soon drive it into bankruptcy.

The stock was suspended Friday in response to the reports, which said the troubled company plans to file for bankruptcy protection as soon as this week.

Analysts have long warned that Takata may be forced into bankruptcy due to the enormous cost of the fatal scandal, which resulted in the recall of tens of millions of vehicles around the world.

The company'south faulty airbag inflators, which can burst up and send shrapnel into drivers and passengers, has been accused for eleven deaths in the U. S. and several others elsewhere.

Related: Have an exploding airbag? You might obtain 0

As the crisis has mounted, Takata has been trying to figure out a way to survive and still hold supplying replacement parts to affected carmakers, such as Honda (HMC) and Toyota (TM). The process of making all U. S. vehicles secure again could latest until two thousand twenty-three.

Takata said in Feb it was negotiating the sale of its business to Detroit-based Key Safety Systems, which is owned by a Chinese company.

According to Friday'south reports in Japanese and international media, Takata would file for bankruptcy protection in Japan and then in the U. S. The sale of its business operations to Key Safety would get space after that.

In a statement late Friday, Takata said that "all options are being considered" for its restructuring and that "number decision of any kind has been made."

Related: U. S. firm is frontrunner to purchase troubled airbag maker

The company'south shares have lost more than half their cost so distant this year. They're worth only about an eighth as much as they were in early two thousand fourteen.

In January, Takata pleaded guilty to corporate criminal charges in the U. S. and agreed to pay a $1 billion fine. Most of that money went to carmakers who have been handling the airbag repairs.

Three former Takata executives have been charged in the U. S. with wire fraud and conspiracy in relation to the sale of the faulty airbags.

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