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.
