Airbag maker Takata has filed for Chapter 11 bankruptcy protection in Wilmington.
The Japanese auto parts company faces billions of dollars in recalls and fines over the failure of its airbag systems, Bloomberg reported.
The Wilmington bankruptcy filing included a Mexico-based Takata business. The company also filed for bankruptcy protection in Japan, Bloomberg reported.
The company’s airbag troubles date back more than a decade, with a large percentage of the world’s automakers using Takata airbags.
The Chapter 11 filing allows Takata protection from creditors while it works out a plan to pay debts or find a company to buy the business.
Automakers, including Honda, have filed recall notices to customers for replacement of the airbags.
