Japan’s Takata Corp (7312.T), the airbag maker at the center of world’s largest automotive recall, has recommended reappointing its current board, underscoring slow progress in its efforts to to clinch a financial backer to overhaul the business.
TOKYO Japan’s Takata Corp (7312.T), the airbag maker at the center of world’s largest automotive recall, has recommended reappointing its current board, underscoring slow progress in its efforts to to clinch a financial backer to overhaul the business.
The proposed reappointments for the six-member board include Chairman Shigehisa Takada. The Takada family commands a stake of around 60 percent in the auto parts maker, which is facing bankruptcy over the crisis.
The target of widespread criticism over the firm’s handling of the multi-billion dollar recall, Takada had said at last year’s shareholders’ meeting that he would resign after a “new management regime” was found.
In a letter to shareholders on Monday, the company said Takada had been nominated for reappointment as he needs to finish important management issues such as recall measures and work relating to the firm’s business revival plans.
U.S. auto components maker Key Safety Systems (KSS) and partner private equity firm Bain Capital are the frontrunners among potential suitors. They are seeking to strike a rescue deal worth around 200 billion yen with Takata’s steering committee and its automaker customers.
Talks have dragged on since February 2016 as potential bidders try to identify and ring-fence Takata’s liabilities.
Takata’s airbag inflators can explode with excessive force, unleashing metal shrapnel inside cars and trucks. They have been blamed for at least 16 deaths and more than 180 injuries worldwide.
Takata’s annual shareholders meeting is scheduled for June 27.
(Reporting by Taiga Uranaka- Additional reporting by Naomi Tajitsu- Editing by Edwina Gibbs)
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