Takata tumbles after report company weighs U.S. bankruptcy filing
- Wall St stumbles as FBI to review more Clinton emails
- FBI to review more emails related to Clinton's private email use
- ExxonMobil (XOM) Tops Q3 EPS by 5c; CapEx Light of Views
- Baker Hughes (BHI), General Electric (GE) in Partnership Talks, Not Merger Talks
- AbbVie (ABBV) Tops Q3 EPS by 1c; Boosts FY16 EPS Outlook
The logo of Takata Corp is seen on its display at a showroom for vehicles in Tokyo, Japan, May 11, 2016. REUTERS/Toru Hanai/File Photo
Get daily under-the-radar research with StreetInsider.com's Stealth Growth Insider Get your 2-Wk Free Trial here.
TOKYO (Reuters) - 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 (NYSE: LAZ) 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.
Reuters reported last month that all five bidders seeking to bail out Takata presented restructuring plans that require the company to file for bankruptcy protection.
Takata shares were trading down 6 percent in the morning session on Tuesday after intially falling as much as 10 percent.
(Reporting by Ayai Tomisawa and Taiga Uranaka; Editing by Chang-Ran Kim and Richard Pullin)
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Rafferty Capital Upgrades Lazard (LAZ) to Buy
- France's Valls expresses 'anger' over Hollande comments: Le Monde
- Lazard Acquires Remaining 50% Stake in MBA Lazard, Fully Integrating Its Latin American Operations