Takata, the company behind the largest automotive recall in history filed for bankruptcy last year and has just announced that their bankruptcy plan was approved by a judge. Now, the company will have to sell $1.6 billion in assets in an effort to stay afloat as well as pay compensation to those who have been injured as a result of the airbag issue plaguing millions of vehicles. In fact, the faulty airbags that inflate too forcefully were found to result in at least 22 deaths along with hundreds of other injuries.
As part of the reorganization bankruptcy plan, Takata will work with car makers to come up with the necessary compensation for those who were injured or wrongfully killed by the airbags. Additionally, the sale of other holdings of the company (aside from airbags) to Key Safety Systems will be reviewed before March 26th by the bankruptcy court.
Of course, a major recall such as this can cost a business billions of dollars and ultimately make it impossible for the business to stay open without reorganizing. While this is a good example of debt reorganization on a major scale, reorganization is also a viable option for many smaller business that are struggling to make ends meet. If your business is struggling financially, contact our firm today to discuss how bankruptcy can be the start of a successful future.
If you require the services of an experienced bankruptcy attorney, contact the Law Offices of Allen A. Kolber, Esq.today to schedule a consultation and discuss your options.