Japan's scandal-hit airbag maker Takata is reportedly preparing to file for bankruptcy protection as early as this month as it prepares to sell its assets to a US company.
Takata will make a formal decision about the bankruptcy filing at its board meeting this month, the leading business daily Nikkei reported, without citing sources.
Nearly 100 million cars, including about 70 million in the United States, were subject to the airbag recall, the largest in history, over the defective Takata airbags blamed for 11 deaths in the United States alone.
Last month, four automakers including Toyota and BMW agreed to pay $553m to settle a US lawsuit over the airbags.
The lawsuit filed in late February claimed the carmakers were aware of the dangerous defects and used the airbags in their vehicles anyway.
Nearly 16 million cars were involved.
Takata pleaded guilty to fraud in February and agreed to pay a $1bn penalty to settle the issue with US regulators.
The report said a new company created under Key Safety will purchase Takata operations for about 180bn yen ($1.6bn) and continue supplying air bags, seat belts and other products.
The downsized Takata will remain responsible for recall-related liabilities, it said.
US autoparts maker Key Safety Systems, owned by China's Ningbo Joyson Electronic, will take over Takata's operations, the report said.
Takata's US-based unit TK Holdings' board is expected to approve a filing for Chapter 11 bankruptcy there later this month, Nikkei said.
Takata officials were not immediately available to comment on the report.
Following the report, trading of Takata shares were suspended on the Tokyo Stock Exchange to give investors time to confirm it.
