NEW YORK (AP) -- Takata Corp's U.S. unit has reached a settlement with representatives of those injured by lethally defective air bags, paving the way for the company to exit Chapter 11 bankruptcy and move forward with a reorganization plan.
The agreement between the Japanese auto parts supplier, injured drivers and creditors, was outlined in documents filed on Saturday in a Delaware bankruptcy court. Two groups representing people suing over the air bags have dropped their opposition to the plan. Under the settlement, a trust fund will be established to resolve the lawsuits.
Takata was forced into bankruptcy amid lawsuits, multimillion-dollar fines and recall costs involving the air bags. Key to the restructuring plan is the planned sale of most of its assets to a Chinese-owned rival for $1.6 billion.