U.S. Bankruptcy Court Confirms TK Holdings Chapter 11 Plan of Reorganization

Court’s Ruling Paves Way for Takata to Finalize Sale to KSS and for TK Holdings Inc. to Emerge from Chapter 11

TOKYO & AUBURN HILLS, Mich.--()--Takata Corporation (“Takata” or the “Company”), a leading global supplier of automotive safety systems such as seat belts, airbags and child seats, today announced that The United States Bankruptcy Court for the District of Delaware (the “Court”) has confirmed the Fifth Amended Chapter 11 Plan of Reorganization ("the Plan") filed by TK Holdings, Inc. (“TKH”), Takata’s main U.S. subsidiary, and certain of TKH’s subsidiaries and affiliates. The confirmation of the Plan is a major milestone in the U.S. Chapter 11 Process and the Company’s comprehensive restructuring, and it paves the way for Takata to complete its previously announced and Court-approved proposed sale to Key Safety Systems (“KSS”). The sale will be finalized upon TKH’s emergence from Chapter 11, which is on target for completion on or about the end of the first quarter of 2018.

The Plan was supported by several of TKH’s main creditor constituencies, including the Official Committee of Unsecured Creditors, the Official Tort Claimants Committee, the Future Claimants’ Representative, and a group of Takata’s OEM customers representing more than 80% of the Company’s annual sales.

We are very pleased to have reached this important milestone,” said Mr. Katsumi Mitsuhashi, President of TKH. “The Court’s approval of our Plan takes us one step closer to achieving our main objective of developing a path forward for Takata that resolves the costs and liabilities related to airbag inflator recalls. Our top priorities remain providing a steady supply of products to our valued customers, including replacement parts for recalls, and a stable home for our exceptional employees. We look forward to completing the restructuring process on or about the end of this quarter.”

Takata and TKH will now turn towards working to satisfy the conditions of the Plan and then emerging from Chapter 11 as soon as possible. Under the terms of the Plan, the sale of substantially all of Takata’s global assets and operations to KSS will be consummated on the Effective Date of the Plan.

Takata continues to work through proceedings under the Civil Rehabilitation Act in Japan. Takata EMEA (Europe, Middle East and Africa) maintains its financial independence and continues to operate on a financially solid basis.

Mr. Mitsuhashi added, “We would not have been able to reach this important milestone without the hard work and dedication of Takata’s employees around the world who have remained focused on our mission to ensure the adequate, uninterrupted supply of safe, high quality parts and components to our customers. We anticipate a quick and seamless integration with KSS, utilizing the combined strengths of both our teams to implement a smooth transition. We are confident that the combined business will be well positioned for long-term success in the global automotive industry.”

Takata expects to continue to meet demand for airbag inflator replacements without interruption. The restructuring proceedings and sale to KSS should have no effect on the ability of drivers to obtain replacements for recalled Takata airbag inflators free of charge. Vehicle owners in the U.S. should continue to visit https://www.airbagrecall.com/ for more information on airbag inflator replacements.

Additional information regarding TKH’s Chapter 11 restructuring including court filings and information about the claims process are available at www.TKrestructuring.com, or by calling TKH’s claims agent, Prime Clerk, at 1-844-822-9229 (Toll free in U.S. and Canada) or 1-347-338-6502 (International).

About Takata

Takata Corporation is a leading global innovator and supplier of automotive safety systems, including airbag systems, seat belts, steering wheels, electronics, sensors, and child restraint systems, and supplies all major automotive manufacturers in the world. Headquartered in Tokyo, Japan, it operates 56 plants in 20 countries with approximately 46,000 global employees worldwide.

Forward-Looking Statements

This press release contains, and oral statements made from time to time by our representatives may contain, forward-looking statements that are based upon our current expectations and assumptions concerning future events, which are subject to a number of risks and uncertainties that could cause actual results to differ materially from those anticipated. The words "expect," "anticipate," "estimate," "forecast," "initiative," "objective," "plan," "goal," "project," "outlook," "priorities," "target," "intend," "evaluate," "pursue," "commence," "seek," "may," "would," "could," "should," "believe," "potential," "continue," or the negative of any of those words or similar expressions is intended to identify forward-looking statements. All statements contained in this press release, other than statements of historical fact, including, without limitation, statements about our operations, financial condition and liquidity, strategies, business initiatives, prospects, expectations regarding future events and our financial performance and the development of the industry in which we operate, are forward-looking statements that involve certain risks and uncertainties. While these statements represent Takata’s current judgment on what the future may hold, and Takata believes these judgments are based upon reasonable assumptions, these statements are not guarantees of any events or financial results, and the Company’s actual results may differ materially.

You should not place undue reliance on the forward-looking statements contained in this press release. These forward-looking statements speak only as of the date on which the statements were made. Takata undertakes no obligation to update publicly or otherwise revise any forward-looking statements, except where expressly required by law.

Contacts

Media:
U.S./U.K.
Sard Verbinnen & Co
Jared Levy/Devin Broda/Kelsey Markovich, 212-687-8080
media@takata.com
or
Japan
Ashton Consulting
Dan Underwood, +81 (0) 3 5425-7220
media@takata.com
or
Germany/Europe
Hering Schuppener Consulting
Pola Moitroux, +49.211.430.79-240
Takata-hs@heringschuppener.com

Contacts

Media:
U.S./U.K.
Sard Verbinnen & Co
Jared Levy/Devin Broda/Kelsey Markovich, 212-687-8080
media@takata.com
or
Japan
Ashton Consulting
Dan Underwood, +81 (0) 3 5425-7220
media@takata.com
or
Germany/Europe
Hering Schuppener Consulting
Pola Moitroux, +49.211.430.79-240
Takata-hs@heringschuppener.com