NEW YORK (TIP): Takata Corp , the Japanese company facing billions in liabilities stemming from its defective air bag inflators, is preparing to file for bankruptcy as early as next week as it works toward a deal for financial backing from US auto parts maker Key Safety Systems Inc, sources said on Thursday.

Takata, one of the world’s biggest automotive suppliers, has been working for months to complete a deal with Key Safety. A person briefed on the matter told Reuters Key was expected to acquire Takata assets as part of a restructuring in bankruptcy. The Nikkei business daily reported that a new company created under Key will purchase Takata operations for about 180 billion yen ($1.6 billion) and continue supplying air bags, seat belts and other products, leaving liabilities behind in a separate entity.

Source: Reuters