Takata plans to file for bankruptcy as early as next week

Takata Corp., the Japanese company facing billions in liabilities stemming from its defective airbag inflators, is preparing to file for bankruptcy as early as next week as it works toward a deal for financial backing from U.S. auto parts maker Key Safety Systems Inc., sources told Reuters on Thursday.

The plans were first reported by the Nikkei news service in Japan. Bloomberg also reported on the plans.

Takata, one of the world's biggest automotive airbag suppliers, has been working for months to complete a deal with Chinese-controlled Key Safety.

A person briefed on the matter told Reuters Key was expected to acquire Takata assets as part of a restructuring in bankruptcy.

Nikkei reported a new company created under Key will purchase Takata operations for about 180 billion yen ($1.62 billion) and continue supplying airbags, seat belts and other products, leaving liabilities behind in a separate entity.

Takata declined to comment. Michigan-based Key, owned by Chinese supplier Ningbo Joyson, did not immediately respond to a request for comment. More from Jessica DiNapoli and David Shepardson/Reuters