Takata settles with injured drivers to exit bankruptcy

Takata is the manufacturer of car airbags. Daimler is recalling 840,000 cars and vans to replace Takata airbags that may be defective.The recall affects about 705,000 Mercedes-Benz cars and around 136,000 Daimler vans in the United States, the German automaker said Wednesday.

NEW YORK (AP) _ Takata Corp’s U.S. unit has reached a settlement with representatives of those injured by lethally defective air bags, paving the way for the company to exit Chapter 11 bankruptcy and move forward with a reorganization plan.

The agreement between the Japanese auto parts supplier, injured drivers and creditors, was outlined in documents filed on Saturday in a Delaware bankruptcy court. Two groups representing people suing over the air bags have dropped their opposition to the plan. Under the settlement, a trust fund will be established to resolve the lawsuits.

Takata was forced into bankruptcy amid lawsuits, multimillion-dollar fines and recall costs involving the air bags. Key to the restructuring plan is the planned sale of most of its assets to a Chinese-owned rival for $1.6 billion.