Takata Corp, the air bag maker from Japan has been losing money continuously due to the recall of hundred thousands of its faulty airbags. The company said on Thursday, it has hired Lazard, the financial advisory and asset management firm to help it tackle the problems through a financial restructuring.
Takatas air bags related issues have caused minimum thirteen cases of deaths and greater than hundred injuries globally. The Malaysian authorities have started an investigation into some recent deaths related to the Takata air bags which might deploy with too much force during accidents, spraying shrapnel into the vehicle.
A committee was formed by the company in February to tackle the issues of recalls and come up with a restructuring plan. The committee members included legal and financial experts and a lawyer Hideaki Sudo, who heads the committee, said Lazard will help the company with its restructuring plan in partnership with the auto customers.
He dais in a statement, These are highly challenging and complex issues, but the committee strongly believes that it is in the best interests of all Takata stakeholders for Takata and its automotive customers to reach a consensual resolution that addresses the costs of the inflator issues while enabling Takata to remain a viable and valued global supplier.