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  © Reuters
Takata: Fall of an air bag giant

SMBC to offer Takata $224m bridge loan

Financing program to ease subcontractor insecurity

| Japan

TOKYO -- Sumitomo Mitsui Banking Corp. announced Monday it has set credit lines of up to 25 billion yen ($224 million) to help Japanese air bag maker Takata provisionally stay in business after it filed for bankruptcy protection.

Debtor-in-possession financing is intended to provide working capital to a company even after bankruptcy proceedings have been initiated. Once the process is started, there is a high possibility that a company's partners will demand cash settlements due to diminished credibility.

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