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Takata to file for bankruptcy Monday, SMFG to provide bridge loan -sources


Reuters

UPDATE 1-Takata to file for bankruptcy Monday, SMFG to provide bridge loan -sources


* To file for bankruptcy in Tokyo on Monday -sources
    * SMBC to provide bridge loans worth tens of blns of yen
-sources
    * Nothing has been decided on filing, financing - Takata

 (Adds shares, background)
    By Taro Fuse and Maki Shiraki
    TOKYO, June 22 (Reuters) - Takata Corp <7312.T> will seek
bankruptcy protection from creditors on Monday, two sources
said, as the Japanese company faces billions of dollars in
liabilities stemming from the biggest recall in automotive
history.
    The firm, whose defective air-bag inflators have been blamed
for at least 16 deaths and more than 150 injuries worldwide,
will file for protection in Tokyo District Court under the Civil
Rehabilitation Act, Japan's version of U.S. Chapter 11
bankruptcy, said the sources, one of whom has direct knowledge
of the matter and one who was briefed on the process.
    Takata will then seek bridge loans from the core banking
unit of Sumitomo Mitsui Financial Group Inc <8316.T>, which will
provide tens of billions of yen (hundreds of millions of
dollars) in bridge loans, one source said.
    Takata spokesman Toyohiro Hishikawa said nothing had been
decided regarding any filing or financing.
    Shares in Takata changed hands for the first time since
sources said last week that the struggling airbag maker was
preparing to file for bankruptcy.
    By mid-afternoon shares had more than halved in value to 116
yen, eroding Takata's market capitalisation by about 75 percent
from a week ago to nearly $86 million now. [nT9N1IB01U]
    Any filing would coincide with a deal for financial backing
from U.S. auto parts maker Key Safety Systems Inc. Key is
expected to acquire Takata assets as part of a restructuring in
bankruptcy, a source told Reuters. [nL3N1JD056]
    Takata would stop making air-bag inflators after completing
a global recall as part of the restructuring plan with Key,
separate sources said. [nL3N1JD4HB]
    Takata plans to begin bankruptcy proceedings in both the
United States and Japan, sources have said. Such moves would
culminate a long, tumultuous fall for the family-controlled
company that grew to become a global supplier to most of the
world's major automakers. [nL4N1IC2JT]
    ($1 = $1.0000)

 (Reporting by Taro Fuse and Maki Shiraki, writing by Thomas
Wilson; Editing by Himani Sarkar)
 ((T.Wilson@thomsonreuters.com; 81-3-6441-1598; Reuters
Messaging: t.wilson.thomsonreuters.com@reuters.net))

Keywords: TAKATA BANKRUPTCY/ (UPDATE 1, PIX)



This article appears in: Politics , World Markets , Stocks


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