Takata is filing for bankruptcy

Takata has said it will seek bankruptcy protection from creditors as the Japanese company faces billions of dollars in liabilities after the biggest recall in automotive history.

The company, whose defective airbags have been blamed for 16 deaths and more than 150 injuries worldwide, will file for protection in Tokyo district court.

Takata will then try to get bridge loans from the core banking unit of Sumitomo Mitsi Financial Group, which will provide tens of billions of yen in bridge loans.

Last week, after sources said Takata was preparing to file for bankruptcy, shares halved in value to 116 yen, eroding Takata’s market capitalisation by around 75 percent.

Takata plans to begin bankruptcy proceedings in both the United States and Japan.