Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
Settings
Settings
Dynamic quotes 
OFFON

4-Traders Homepage  >  Equities  >  SHANGHAI STOCK EXCHANGE  >  Ningbo Joyson Electronic Corp    600699   CNE000000DJ1

NINGBO JOYSON ELECTRONIC CORP (600699)
Mes dernières consult.
Most popular
  Report  
SummaryQuotesChartsNewsAnalysisCalendarCompanyFinancialsConsensusRevisions 
News SummaryMost relevantAll newsofficial PublicationsSector newsTweets

Takata's bankruptcy to pit automakers against air bag victims

share with twitter share with LinkedIn share with facebook
share via e-mail
0
07/17/2017 | 10:51am CEST
FILE PHOTO: A woman stands next to a logo of Takata Corp at a showroom for vehicles in Tokyo

WILMINGTON, Del./NEW YORK (Reuters) - The global recall of Takata Corp's defective air bags widened last week and the number of confirmed deaths rose, but legal experts said the bigger worry for car companies caught in the fallout is playing out in a Delaware bankruptcy courtroom.

Earlier this month, people injured by the air bags, which degrade over time and can inflate with excessive force, were appointed to their own official committee in the Japanese company's U.S. bankruptcy, giving them a powerful voice in the proceedings.

This unusual committee, which includes people whose cars lost value due to the recall, will be pitted against Honda Motor Co, Toyota Motor Corp , and other automakers.

The car companies have been trying to use the bankruptcy to limit their liability for installing the faulty air bags, said Kevin Dean, a Motley Rice attorney who represents injured drivers on the committee.

Because the committee has official status, Takata must provide it with funds which can be used to investigate the automakers' liability or to challenge financial assumptions. Without a committee, plaintiffs' lawyers would typically have to pay for that themselves.

“If I were a plaintiffs’ lawyer, this would be a golden goose for me,” said John Pottow, a professor at the University of Michigan Law School, of the appointment of the special committee.

Takata, Honda, Toyota and General Motors Co declined to comment. Other carmakers did not return requests for comment.

Bankruptcies typically only have one official creditors committee. In the Takata case, the committee of injured drivers will sit alongside another made up of suppliers and vendors, who are likely more interested in the future of the business than compensation disputes, according to bankruptcy attorneys who are not involved in the case.

Both committees were appointed by the U.S. Trustee's Office, the arm of the U.S. Department of Justice that acts as a bankruptcy watchdog.

Seventeen fatalities, including one confirmed last week, and at least 180 injuries have been tied to Takata's air bags since at least 2009.

Last week, the National Highway Traffic Safety Administration widened a global recall of the airbags, which regulators expect to ultimately cover 69 million cars and 125 million inflators. Most defective air bags have not been replaced.

In January, Takata entered a settlement with the U.S. Department of Justice, setting aside $125 million to compensate consumers and $850 million in restitution for automakers.

COMPENSATION FUND

Facing up to $50 billion in liability, Takata filed for bankruptcy in June in Japan and the United States with a plan to sell its non-air bag operations for $1.6 billion to Key Safety Systems, which is owned by China's Ningbo Joyson Electronic Corp. Its air bag business would continue to make replacements for the 125 million recalled inflators.

Takata said in its Chapter 11 filings that it will create a fund to compensate future injuries stemming from the air bags.

Companies that wind up bankrupt due to faulty products often set up such funds, and gather contributions from insurers and other potentially liable parties, who in return get shielded from ongoing litigation.

Similar funds were set up in and the 1985 bankruptcy of A.H. Robins Co, which sold Dalkon Shield contraceptive devices and the 1995 bankruptcy of Dow Corning, the maker of silicone breast implants.

A $161 million fund in the 2012 bankruptcy of Blitz U.S.A. Inc, which made red plastic gas containers, included $23 million from Wal-Mart Stores Inc. In return, the retailer was protected from lawsuits that alleged it knowingly sold defective gas cans.

Automakers would likely demand similar legal protections in return for contributing to a Takata fund, and the committee will likely hire experts to challenge those proposals, bankruptcy experts said.

The committee's lawyers will probably also want to investigate what car companies knew about the air bags to help determine their liability and their contributions, the experts said.

“If I were an injured person, I wouldn’t want Takata or the carmakers to decide on the size of the fund,” said Steven Todd Brown, a professor at the University at Buffalo School of Law who specializes in compensation funds.

Some experts said they expected the parties to avoid protracted legal battles which have marred other product liability bankruptcies like those involving asbestos.

Pottow, at the University of Michigan Law School, cautioned that may not be so simple.

“We’re in pretty novel terrain here, given the amount of parties and the recall involved.”

(Reporting by Tom Hals in Wilmington, Delaware and Tina Bellon in New York; Editing by Noeleen Walder and Lisa Shumaker)

By Tom Hals and Tina Bellon

Stocks mentioned in the article
ChangeLast1st jan.
GENERAL MOTORS CORPORATION 1.43% 38.39 Delayed Quote.-6.34%
HONDA MOTOR CO LTD -3.39% 3531 End-of-day quote.-10.04%
TAKATA CORPORATION -18.18% 18 End-of-day quote.0.00%
TOYOTA MOTOR CORP -3.05% 7208 End-of-day quote.-1.26%
share with twitter share with LinkedIn share with facebook
share via e-mail
0
Latest news on NINGBO JOYSON ELECTRONIC C
04/12NINGBO JOYSON ELECTRONIC : Key Safety Systems completes deal to acquire air-bag ..
RE
03/20Senators to press automakers, regulators on Takata air bag recall
RE
03/13Honda, Ford to testify at U.S. Senate Takata hearing - aides
RE
03/13HONDA, FORD TO TESTIFY AT U.S. SENAT : aides
RE
02/17NINGBO JOYSON ELECTRONIC : Judge approves Takata's U.S. bankruptcy plan
RE
02/16NINGBO JOYSON ELECTRONIC : Takata has resolved most objections to its U.S. bankr..
RE
02/14Automakers to provide up to $130 million for Takata's U.S. settlement
RE
01/29Ford China chief in abrupt departure, a blow to recovery hopes
RE
01/12Ford urges 2,900 pickup owners to stop driving after new Takata death
RE
01/04NINGBO JOYSON ELECTRONIC : U.S. judge clears Takata to seek creditor vote on ban..
RE
More news
Financials ( CNY)
Sales 2018 42 332 M
EBIT 2018 2 534 M
Net income 2018 1 072 M
Debt 2018 6 745 M
Yield 2018 1,05%
P/E ratio 2018 23,08
P/E ratio 2019 18,57
EV / Sales 2018 0,77x
EV / Sales 2019 0,67x
Capitalization 25 688 M
Chart NINGBO JOYSON ELECTRONIC C
Duration : Period :
Ningbo Joyson Electronic C Technical Analysis Chart | 600699 | CNE000000DJ1 | 4-Traders
Technical analysis trends NINGBO JOYSON ELECTRONIC C
Short TermMid-TermLong Term
TrendsBearishBearishBearish
Income Statement Evolution
Consensus
Sell
Buy
Mean consensus OUTPERFORM
Number of Analysts 15
Average target price 37,0  CNY
Spread / Average Target 37%
EPS Revisions
Managers
NameTitle
Jian Feng Wang Chairman & President
Zhi Ming Guo Chairman-Supervisory Board
Jun Yu Li Chief Financial Officer
Jin Hong Fan Vice Chairman
Kai Yu Secretary & Director
Sector and Competitors
1st jan.Capitalization (M$)
NINGBO JOYSON ELECTRONIC CORP-16.06%4 022
CONTINENTAL-0.47%51 845
DENSO CORP-19.51%40 103
APTIV15.15%25 863
MAGNA INTERNATIONAL INC.17.91%23 066
HYUNDAI MOBIS CO., LTD.--.--%21 613