WILMINGTON, Del. — The American unit of Takata, the Japanese company whose airbags have been linked to more than a dozen deaths, has reached an agreement with its creditors, lawyers for affected motorists and automakers that eases its way to end its Chapter 11 bankruptcy and sell its viable operations, according to court papers.
The company’s airbags can explode with too much force, prompting the largest recall in automotive history and forcing Takata and its United States unit, TK Holdings, into bankruptcy.
TK Holdings had been seeking a judge’s approval for a plan to exit bankruptcy over the opposition of a committee for injured drivers and a separate committee of unsecured creditors.
But the two committees, automakers and Key Safety Systems, which is acquiring the viable business lines of Takata, reached a deal that resolves the biggest objections to the plan, according to court documents filed on Saturday.
Under the agreement, a trust will be established to pay compensation for those injured or killed by the airbags, and automakers will surrender some of their claims against Takata.
The 13 automakers that joined the agreement include General Motors, Ford Motor, Toyota Motor, and the United States affiliates of Honda Motor and Volkswagen AG.