Info in Miami & Nationwide
"Colson Hicks Eidson is recognized as one of the top litigation firms in the country, handling local, national and international litigation for a wide range of clients." - Chambers USA
Will Takata Avoiding Bankruptcy Help Recall Victims?
The Takata Recall is getting more and more troubling, and now the government is increasing its own involvement. U.S. Senators have sent letters to the embattled auto parts maker. They want guarantees that the company will be able to repair the defective safety devices it sold. But will the company’s response be what lawmakers had hoped for?
Is Takata Avoiding Bankruptcy?
Upon hearing that Takata Corp could declare bankruptcy, federal officials got concerned. They sent letters to the National Highway Traffic Safety Administration (NHTSA) and Takata to confirm that supplies of replacement airbags would not be affected by a Takata bankruptcy. Well, they’ve got an answer… sort of.
On Friday November 4th, the CFO of Takata—Yoichiro Nomura—announced that the company would like to avoid bankruptcy. He continued to say that he believes court-led bankruptcy would disrupt the supply of replacement parts. He also believes the company’s business would be halted by bankruptcy, so Nomura further recommends out-of-court solutions.
What Out-of-Court Solutions Does Takata Have?
This means the company is depending heavily on their negotiations with automakers to help foot the recall bill. However, many companies are looking at the prospect of buying Takata, and almost all of them want Takata to declare bankruptcy.
Does this mean there is a chance that the Takata recall won’t be fully realized? And if the recall isn’t finished, what will officials do about these dangerous vehicles that are still on our roads? Keep following the car defect lawyers here at Colson Hicks Eidson, and visit our Twitter and Facebook walls to let your voices be heard.