Ashby & Geddes Advises Future Claimants’ Representative in Chapter 11 Bankruptcy Cases of Takata Corporation’s North American Affiliates, TK Holdings Inc. and Its Affiliated Debtors
Following the recall of millions of vehicles equipped with malfunctioning Takata air bag inflators (the so-called “PSAN Inflators”), TK Holdings, Inc. and certain of its affiliates (the “Debtors”) filed for chapter 11 bankruptcy protection in June 2017 to effectuate the sale of substantially all of their non-PSAN Inflator assets to Joyson KSS Auto Safety, S.A. and certain of its subsidiaries or affiliates as part of a global sale of the non-PSAN Inflator assets of the Debtors’ ultimate parent, Takata Corporation. The United States Bankruptcy Court for the District of Delaware, the Court overseeing the Debtors’ bankruptcy proceedings, appointed Roger Frankel as the legal representative for Future Claimants – i.e. those individuals who sustain personal injuries after the filing of the bankruptcy arising from or related to PSAN Inflators or their component parts manufactured by the Debtors or their affiliates prior to the effective date of a chapter 11 plan of reorganization in the Debtors’ bankruptcy cases. Mr. Frankel selected, among others, Ashby & Geddes to represent him as the Future Claimants’ Representative in the proceedings.
Following expedited and contested complex restructuring proceedings, a global settlement was reached in February 2018 among all key stakeholders, including the Future Claimants’ Representative, and embodied in the Fifth Amended Joint Chapter 11 Plan of Reorganization of TK Holdings Inc. and Its Affiliated Debtors (the “Plan”), which was confirmed by the Court on February 21, 2018. The Plan contemplates the creation and funding of a trust – the “PSAN PI/WD Trust” – that will assume responsibility for present and future “PSAN PI/WD Claims” asserted against the Debtors and certain third-parties, and is expected to be funded with approximately $130 million of contributions, subject to possible additional contributions from various sources. The Plan is expected to go effective in early April.
Ashby & Geddes Bankruptcy and Insolvency attorneys William P. Bowden, Karen B. Skomorucha Owens, and Katharina Earle and Corporate and Commercial Litigation and Counseling attorneys Philip Trainer, Jr. and Catherine A. Gaul represent Mr. Frankel in the Debtors’ bankruptcy proceedings.