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Takata bankruptcy proceedings enter the homestretch

US court gives its blessing, putting turnaround in Japanese side's hands

Nikkei staff writers | Japan

TOKYO -- Scandal-hit air bag maker Takata is getting closer to wrapping up the approval process for a restructuring plan that would see its core business sold to a Chinese-owned U.S. peer.

Mounting costs from massive recalls involving faulty air bags forced Takata to file for bankruptcy protection in Japan and the U.S. in June. The Japanese company signed a deal in November to sell everything except certain assets and operations related to air bag inflators to Key Safety Systems, owned by China's Ningbo Joyson Electronic, for $1.58 billion. The proceeds will be used to repay debts and compensate victims of air bag accidents.

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