June 26 (UPI) -- Japanese automobile parts manufacturer Takata Corp. filed for bankruptcy protection in the United States and Japan,the company announced Monday.
The company is under pressure from lawsuits and recall costs worldwide related to defective vehicle air bag inflators. It is responsible for billions of dollars to banks and automakers for the costs of replacing the parts.
In January, Takata pleaded guilty to concealing defects in millions of air bags. The company agreed to pay $1 billion in reparations, including $125 million to drivers and passengers injured by defective airbag systems. Three company executives were criminally charged, NPR reported.
A separate $850 million fund was established to refund costs of air bag recalls and and replacement costs incurred by affected auto manufacturers.
The defective airbags were linked to 16 deaths, including 11 in the United States.
The company intends to sell the remainder of its operations to a U.S. competitor, Michigan-based Key Safety Systems, for $1.59 billion.