Global leader in mobility safety, US-based Key Safety Systems has completed the global acquisition of the bankrupt Japanese car safety systems maker Takata Corp. for $1.58 billion through a combination of equity and debt, to merge and form a combined entity re-branded as Joyson Safety Systems and is headquartered in Michigan, US, reported Economic Times. The deal earlier announced on June 25, 2017, was funded by a consortium led by Joyson Electronics and Asia-based PE firm PAG Asia capital and did not involve liabilities related to the recall of Takata’s ammonium nitrate airbag inflators.

J Sagar Associates (JSA) acted as the Indian legal advisors to Key Safety Systems and was led by partners Upendra Nath Sharma and Pallavi Puri, principal associate Bharat Bhushan Sharma, associates Manini S and Ayushi Pandey along with company secretary Anuj Jain. The competition aspects of the transaction was represented by partner Vaibhav Chouske while partners Amar Gupta and Divyam Agarwal along with associate Akhil Bhardwaj advised on various issues of regulatory and contractual limitations of liabilities, recognition of cross-border insolvencies and enforcement of indemnities, in Indian courts. The banking and finance aspects of the transaction were advised by partners Divyanshu Pandey and Arpita Garg and associate Arpita Latta.

Skadden Arps Slate Meagher & Flom acted as the international legal counsel to Key Safety Systems in the transaction.

Japan-based Takata Corporation is a leading global supplier of vehicle safety systems including seat belts, airbags, steering wheels and child seats as well as other automotive products. The company’s recent collapse had been triggered by the massive recall of faulty airbags that had led to more than 20 deaths and hundreds of injuries around the world and affected leading car manufacturers like Toyota, Honda and Volkswagen. It was also reported to be the largest corporate bankruptcy of a Japanese manufacturer and marked the end of the 84-year old company.

Japan, US

2018-04-12

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