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Takata seen turning over air bag, other ops to new company

Japanese parts maker would be left holding debts linked to massive recall

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Takata's autoparts operations will live on under a subsidiary of the company's turnaround sponsor.   © Reuters

TOKYO -- Japan's Takata is considering selling all operations to a newly created company after filing for bankruptcy protection, leaving the stripped-down autoparts maker to repay creditors such as car manufacturers for expenses linked to a massive recall of defective air bags, and then shut down.

An external committee charged with formulating a plan for Takata's rescue in February recommended Key Safety Systems of the U.S., a subsidiary of China's Ningbo Joyson Electronic, as a turnaround sponsor. Leading Takata creditors including Honda Motor and Toyota Motor have since discussed with Key Safety ways in which recall expenses borne by the automakers might be repaid, largely agreeing on a plan that would transfer core operations to a new company.

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