The move cleared the path for a $1.6bn (£1.3bn) deal, which saw Detroit-based Key Safety Systems buy all of its rival's assets, excluding those related to the airbags.
Takezo Takada starts Takata Co, maker of lifelines for parachutes.
Takata filed for bankruptcy protection Monday with liabilities estimated at well over ¥1 trillion, the largest bankruptcy by a Japanese manufacturer in the postwar period. Drowning in a sea of lawsuits and recall costs, Japanese air bag maker Takata Corp.is expected to seek bankruptcy.
The settlement of around 1 billion US dollars included compensation for the victims of the faulty airbag inflators, and the mounting recall costs of which have also been shouldered by Takata's clients including automakers such as Honda Motor Co., Volkswagen AG and Toyota Motor Corp.
Global transport authorities have ordered about 100 million inflators to be recalled. They have been blamed for at least 16 deaths and 180 injuries worldwide. In June 2016, federal regulators said inflators in 2001-2003 model Honda and Acura vehicles have up to a 50-percent chance of a unsafe airbag inflator rupture in a crash and urged owners to stop driving until repairs were made.
In addition to its US-based subsidiary in the state of DE, which is under the protection of Chapter 11 on bankruptcy, its various units, particularly in China and Mexico, are concerned.
"We caused troubles for our supporters, those who cooperated with us and the creditors", chairman Shigehisa Takada told reports at a news conference.
February, 2016 - Takata names an outside steering committee to develop a comprehensive restructuring plan while continues to supply recall inflators.
There have been multiple issues with Takata's airbags but the main one involved airbag inflators that explode when the airbag is activated and blast shrapnel into the cabin.
"We're in a very hard situation, and we had to find ways to keep supplying our products", said group president Shigehisa Takada.
Honda Motor, once Takata's biggest customer, said it had reached no final agreement on responsibilities for the recall.
Fallout from the bankruptcy filing came swiftly from the Tokyo Stock Exchange, which said it was stripping the company from trading. Following the bankruptcy filings, automakers "unwillingly will have to absorb the difference" between the money Takata receives and the outstanding recall costs, he said.
Takata Corp.in May reported a full-year group net loss of 79.59 billion yen (698.80 million USA dollars), marking its third consecutive year of red ink, and booked a special loss of 132.98 billion yen owing to costs connected to the global recall. The VIN check page will be updated as automakers announce more recalls. Takata sold the inflators to 19 automakers, including Toyota, Subaru, BMW, Honda, Ford and Nissan. Takata has already paid $125 million into a fund for victims and a $25 million fine to the U.S. Justice Department.
That settlement will speed the removal of faulty inflators from 15.8 million vehicles and compensate consumers for economic losses, Prieto said. That's what attracted Key Safety Systems, which is owned by China's Ningbo Joyson Electronic Corp.
Scott Upham of the automotive consulting firm Valient Research in Rochester, N.Y., says Key Safety has gone to great lengths to reassure Takata customers.
Takata's ammonium-nitrate inflators now incorporate a drying agent, called a desiccant, and it's important that production continue to keep recall repairs moving.