But interested bidders, if the parts maker goes up for sale, want Takata to put its US business into bankruptcy first, the sources said. About 100 million Takata air bag inflators have been classified as defective, leading to continuing safety recalls. Over time, unused money would be released to the Takata bankruptcy estate. The GM ruling only binds US Bankruptcy Courts in one of 11 US judicial circuits, and Takata may look to other courts. Takata's main US subsidiary, Michigan-based TK Holdings Inc, is incorporated in Delaware, giving the company access to the state's prominent bankruptcy court and 3rd US Circuit precedent.

Source: The Edge Markets November 07, 2016 13:24 UTC