Takata, firm that plead guilty for exploding airbag scandal, files for bankruptcy

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Japanese parts supplier Takata Corp President Shigehisa Takada bows before a press conference in Tokyo on November 4, 2015. US auto safety regulators announced a record 200 million USD civil fine against Takata on November 4 for providing inadequate and inaccurate information about its dangerously explosive airbags installed in millions of cars. AFP PHOTO / KAZUHIRO NOGI (Photo credit should read KAZUHIRO NOGI/AFP/Getty Images)

HONG KONG (CNNMoney) — Takata has filed for bankruptcy and is selling most of its business to an American rival after failing to recover from one of the worst auto safety scandals ever.

Analysts had long warned that Takata could be forced into bankruptcy due to the huge cost of a deadly exploding airbag crisis, which resulted in the recall of tens of millions of vehicles around the world.

The company’s defective airbag inflators, which can explode and send shrapnel into drivers and passengers, have been blamed for 11 deaths in the U.S. and several others elsewhere.

Takata said Monday it’s seeking bankruptcy protection both in Japan, where it’s based, and in the U.S.

Key Safety Systems, a Chinese-owned company based in Michigan, is paying $1.6 billion for nearly all of Takata’s operations. But it’s staying away from the parts that deal with the airbag inflators, which will eventually be wound down.