Takata settles with injured drivers to exit bankruptcy

NEW YORK, Feb 12: Takata Corp's US 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, according to court documents.
The agreement between the Japanese auto parts suppliers, injured drivers and creditors, was outlined in documents filed in a Delaware bankruptcy court. Two groups representing people suing over the air bags have dropped their opposition to the restructuring plan, according to the documents filed on Saturday. Under the settlement, lawsuits will be resolved through a trust fund.
Takata was forced into bankruptcy amid lawsuits, multimillion-dollar fines and crushing 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.
Takata's air bag inflators can explode with too much force, spewing shrapnel into drivers and passengers.     �AP