Chinese-owned Key Safety Systems Inc. has emerged as the leading bidder for Takata Corp., the embattled air bag maker that's seeking a buyer after causing the biggest safety recall in automotive history.
An external committee appointed to spearhead Takata's restructuring recommends Key Safety, the Tokyo-based supplier said in a statement Saturday, adding that no final decision has been made. Key Safety's main rival in the auction, Autoliv Inc. of Sweden, is more interested in purchasing parts of Takata if the Japanese company files for bankruptcy protection and needs to sell some business units, according to a person familiar with the matter.
Takata said that no decision has been made whether the company will go through court-led restructuring. While Takata has said it doesn't envision reorganization through a court-led bankruptcy — which would disrupt the supply of parts — the company's shares and bonds have plunged since reports that bidders are leaning toward such a step for the company as it will shield them from liabilities.