Prospective rescuers of Takata Corp have extended talks, currently in their 14th month, for a deal to take control of the air bag maker at the heart of the automobile market’s most significant safety recall, individuals briefed on the procedure said.
Auto-parts maker Key Safety Systems Inc (KSS) and Bain Capital LLC are the favored bidder for Takata, whose malfunctioning air bags have been blamed for at least 16 deaths.
Conversations that consist of the steering committee tapped by the air bag maker to manage the search for a monetary sponsor, automaker customers, suitors and bankers are now most likely to run on until a minimum of end-May, 3 individuals informed Reuters.
The parties have already moved beyond a self-imposed end-March deadline to thrash out an offer.
New talks, called by 2 participants as “disorderly”, have concentrated on concerns such as an indemnity agreement to cover repayment expenses for air bag recalls, approximated to be as high as $10 billion.
KSS, a U.S.-based maker of air bags, seatbelts and steering wheels, and Bain, a U.S. personal equity fund, are still carrying out due diligence, among those near to the matter stated.
Another said KSS – which was purchased in 2016 by China’s Ningbo Joyson Electronic – and Bain to offer around 200 billion yen ($1.8 billion) for Takata.
A representative for Takata and the steering committee refused to comment. A spokeswoman for KSS also refused to comment.
Automakers consisting of Honda Motor, which have been bearing the cost for recalls going back to 2008, want Takata restructured through a transparent court-ordered procedure such as bankruptcy, which would eliminate the company’s shareholder value, four automaker sources have informed Reuters.