New Delaware Chapter 11–TK Holdings, Inc.
TK Holdings, Inc., a subsidiary of Takata Corporation, and eleven (11) of its subsidiaries and affiliates have filed petitions for relief under Chapter 11 in the Bankruptcy Court for the District of Delaware (Lead Case No. 17-11375). The First Day Declaration cites the massive recall (over 124,000,000 units worldwide) of Takada’s phase-stabilized ammonium nitrate airbag inflators as the primary cause of its filing. The First Day Declaration also explains that Takata Corporation (TKJP) and its Japanese subsidiaries will be commencing proceedings under the Civil Rehabilitation Act of Japan in the Tokyo District Court. According to a press release on June 25, TKJP and TK Holdings have reached an agreement in principle for the sale of substantially all of their assets to Key Safety Systems, headquartered in Sterling Heights, MI, for approximately $1.588 billion. Prime Clerk, LLC is the proposed claims and noticing agent. The cases have been assigned to the Honorable Brendan Linehan Shannon.
As the law continues to evolve on these matters, please note that this article is current as of date and time of publication and may not reflect subsequent developments. The content and interpretation of the issues addressed herein is subject to change. Cole Schotz P.C. disclaims any and all liability with respect to actions taken or not taken based on any or all of the contents of this publication to the fullest extent permitted by law. This is for general informational purposes and does not constitute legal advice or create an attorney-client relationship. Do not act or refrain from acting upon the information contained in this publication without obtaining legal, financial and tax advice. For further information, please do not hesitate to reach out to your firm contact or to any of the attorneys listed in this publication.
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