Shumaker Manufacturing

A Legal & Industry Review

“Takata: The Unfortunate Recall” featured in the ACC Charlotte Chapter’s December Newsletter

David Conaway’s article, “Takata: The Unfortunate Recall”, was featured in the  Association of Corporate Counsel Charlotte Chapter’s December 7, 2017 Newsletter. In the article, David discusses Takata’s airbag recall and the economic ramifications for its stakeholders, in connection with Takata’s Chapter 11 filing cross-border insolvency proceedings. Continue reading

Bracing for Takata Bankruptcy

The Wall Street Journal, June 16, 2017 edition, reports that Takata Corporation is preparing a bankruptcy filing, as soon as next week, in both Japan and the United States.  A key reason for the United States’ Chapter 11 filing is to utilize the strategic tool, a Section 363 sale, to consummate a “takeover” deal with rival Key Safety Systems, Inc.  Section 363 allows a Chapter 11 debtor to sell all of its assets to a third party, free and clear of certain liabilities.  Key issues  for creditors in the Chapter 11 case will include the allocation of the purchase price paid; the liabilities assumed by Key Safety Systems, Inc.; and the allocation and impact of the recall costs among Takata’s stakeholders, including the affected automakers.

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