People injured by Takata Corp's defective air bags were given an official role in the bankruptcy of its U.S. unit on Thursday, allowing them to challenge restructuring plans that plaintiffs' lawyers have criticized as protective of automakers.
A seven-member official committee will represent economic loss and personal injury or tort claimants, David Buchbinder, a lawyer with the U.S. Department of Justice's bankruptcy watchdog, told a meeting of creditors of Takata's U.S. business.
Official committees receive funds from a debtor to hire professionals who can carry out investigations and test financial assumptions.
William Weintraub, a lawyer with Goodwin Procter who is not involved in the Takata case, said he expected the committee "to be active and to make sure that the claims of the car manufacturers are not treated preferentially and that tort victims are fairly compensated."
A second five-member committee of suppliers and vendors was also appointed, according to Buchbinder.
Takata filed for bankruptcy in Japan and the United States last month, facing billions of dollars in liabilities from recalls and lawsuits stemming from its air bags.
READ: Japanese airbag maker Takata files for bankruptcy, gets US sponsor
The inflator compound used in the bags becomes volatile with age, causing the devices to inflate with too much force. The air bags have been linked to 16 deaths, mostly in the United States, and hundreds of injuries.
One person appointed to the personal injury committee, Adrian Antonio Pielago, allegedly suffered a major neck laceration and nerve damage last year in an accident involving a Takata air bag, according to court records.
Takata is finalizing a $1.6 billion sale of most of its business to Michigan-based Key Safety Systems, owned by China's Ningbo Joyson Electronic Corp.
The deal is meant to save 14,000 jobs, provide a stable supply of replacement air bags and finance a $1 billion settlement with the U.S. government.
Personal injury lawyers said at a bankruptcy hearing last month that Takata was deferring too much to automakers, which claim they are owed billions of dollars in recall costs.
Lawyers for Takata's U.S. business said the automakers provided financing to Takata and received protections in return.
The company has set aside $125 million for injury claims, but lawyers for injured drivers said it may not be enough because millions of air bags have yet to be recalled.
The lawyers say more money could come from Takata's insurance, as well as from its sale to Key Safety.
Reuters
Fri Jul 07 2017
Takata filed for bankruptcy in Japan and the United States last month, facing billions of dollars in liabilities from recalls and lawsuits stemming from its air bags. - REUTERS/Toru Hanai
The battle to reduce road deaths
In Malaysia, over half a million road accidents have been recorded so far this year.
Pro-Palestinian NGOs seek court order to stop Dutch arms exports to Israel
The Dutch state, as a signatory to the 1948 Genocide Convention, has a duty to take all reasonable measures at its disposal to prevent genocide.
How quickly can Trump's Musk-led efficiency panel slash US regulations?
Moves by Trump and his appointees to eliminate existing rules will be met with legal challenges, as many progressive groups and Democratic officials have made clear.
2TM: Consultations on PTPTN loans, admission to IPTA at MOHE booth
Consultations on PTPTN loans and admission to IPTA are among services provided at the Higher Education Ministry booth.
Kampung Tanjung Kala residents affected by flooded bridge every time it rains heavily
Almost 200 residents from 60 homes in Kampung Tanjung Kala have ended up stuck when their 200-metre (m) long concrete bridge flooded.
COP29 climate summit draft proposes rich countries pay $250 billion per year
The draft finance deal criticised by both developed and developing nations.
Bomb squad sent to London's Gatwick Airport after terminal evacuation
This was following the discovery of a suspected prohibited item in luggage.
Kelantan urges caution amidst northeast monsoon rains
Kelantan has reminded the public in the state to refrain from outdoor activities with the arrival of the Northeast Monsoon season.
Former New Zealand PM Jacinda Ardern receives UN leadership award
Former New Zealand prime minister Jacinda Ardern was given a global leadership award by the United Nations Foundation.
ICC'S arrest warrants for Netanyahu, Gallant an apt decision - PM
The decision of the ICC to issue arrest warrants against Benjamin Netanyahu and Yoav Gallant is apt, said Datuk Seri Anwar Ibrahim.
KTMB provides two additional ETS trains for Christmas, school holidays
KTMB will provide two additional ETS trains for the KL Sentral-Padang Besar route and return trips in conjunction with the holidays.
BNM'S international reserves rise to USD118 bil as at Nov 15, 2024
Malaysia's international reserves rose to US$118.0 billion as at Nov 15, 2024, up from US$117.6 billion on Oct 30, 2024.
Findings by dark energy researchers back Einstein's conception of gravity
The findings announced are part of a years-long study of the history of the cosmos focusing upon dark energy.
NRES responds to Rimbawatch press release on COP29
The Ministry of Natural Resources and Environmental Sustainability (NRES) wishes to offer the following clarifications to the issues raised.
Online Safety Bill and Anti-Cyberbullying Laws must carefully balance rights and protections
The Online Safety Advocacy Group (OSAG) stands united with people in Malaysia in the fight against serious online harms.
Malaysia's inflation at 1.9 pct in Oct 2024 - DOSM
Malaysia's inflation rate for October 2024 has increased to 1.9 per cent, up from 1.8 per cent in September this year.
Saudi Arabia showcases Vision 2030 goals at Airshow China 2024
For the first time, Saudi Arabia is participating in the China International Aviation & Aerospace Exhibition held recently in Zhuhai.
King Charles' coronation cost GBP 71mil, govt accounts show
The coronation of Britain's King Charles cost taxpayers GBP72 million (US$90 million), official accounts have revealed.
Couple and associate charged with trafficking 51.9 kg of meth
A married couple and a man were charged in the Magistrate's Court here today with trafficking 51.974 kilogrammes of Methamphetamine.
PDRM to consult AGC in completing Teoh Beng Hock investigation
The police may seek new testimony from existing witnesses for additional insights into the investigation of Teoh Beng Hock's death.