WILMINGTON, Del. (Reuters) – Takata Corp’s U.S. unit received court approval for its bankruptcy exit plan, a plaintiffs’ law firm said on Saturday, clearing the way for a $1.6 billion sale of Takata assets and providing compensation for those injured by the company’s deadly air bags.
Takata and its U.S. unit, TK Holdings Inc, filed for bankruptcy last year in the wake of the largest automotive recall in history. The company’s air bags can inflate with too much force and spray metal fragments, and have been linked to hundreds of injuries and at least 22 deaths.
”We are pleased that Judge (Brendan) Shannon has approved what we believe to be fair options for current and future victims of Takata airbags that provide swift resolution and allow victims to try to move on with their lives,” said a statement from the Motley Rice law firm.
The law firm represented more than two dozen injured drivers in the U.S. bankruptcy case.
The U.S. unit’s reorganization plan will include funds provided by automakers to help compensate those injured by the air bags.
On Friday, a lawyer for Takata’s U.S. unit told the bankruptcy court in Wilmington, Delaware, that the U.S. government will complete its review of the planned sale of Takata’s non-air bag businesses by March 26.
The non-air bag inflator businesses are being sold to Key Safety Systems, a unit of China’s Ningo Joyson Electric Corp (600699.SS).
Reporting by Tom Hals in Wilmington, Del.Editing by Matthew Lewis