Air bag maker Takata Corp., facing an estimated ¥1.7 trillion in liabilities, filed Monday for bankruptcy protection under the Civil Rehabilitation Law in what is expected to be Japan's biggest postwar bankruptcy involving a manufacturer.
The request was immediately accepted by the Tokyo District Court, which issued an order to protect Takata's assets from creditors, the company said.
Takata has suffered from massive recall costs due to faulty air bag products that reportedly have been linked to at least 17 deaths worldwide. The inflators of the air bags can explode with excessive force and blow a metal canister apart, sending shrapnel into the passenger compartment.