TOKYO Shares of Takata Corp (7312.T) fell sharply on Tuesday after The Wall Street Journal reported late last week that the troubled Japanese air bag maker is weighing a U.S. bankruptcy filing as one option for clearing a path for an outside investor.
Takata issued a statement on Tuesday saying the reported plan was not something it had announced. Markets were closed in Japan on Monday for a public holiday.
Citing people familiar with the matter, the Wall Street Journal said on Friday that Takata’s U.S. arm would seek protection from creditors in a federal bankruptcy court under preliminary plans being discussed.
Takata, which has retained investment bank Lazard Ltd (LAZ.N) as an advisor, has been working to choose a sponsor for its turnaround as it faces huge costs related to the global recall of millions of potentially faulty air bag inflators.