* Shares lose a fifth of value, down by daily limit of 100
* KSS prefers court-led restructuring
* Automakers set to support pick but want court-led
(Recasts with share close)
TOKYO, Feb 6 Shares in Japan's Takata Corp
lost a fifth of their value on Monday after sources
said Key Safety Systems (KSS) had been selected to lead its
turnaround, fanning concern that a court-led restructuring was
on the cards.
The Nikkei business daily, which first reported the news of
KSS's selection, said automakers would support the pick on
condition Takata pursue a court-mediated turnaround in both
Japan and the United States - a move that could wipe out
Shares in Takata, at the centre of the world's biggest auto
industry recall to date, fell 19 percent or by their daily limit
of 100 yen after sell orders dwarfed bids all day. The company
is now valued at $322 million.
The steering committee leading the selection process had
told Takata's automaker clients of its decision, three sources
told Reuters on Saturday.
In a statement late on Saturday, Takata denied that it had
selected KSS as its sponsor or a court-led restructuring as the
way forward. KSS declined to comment.
KSS, a U.S.-based auto parts supplier owned by China's
Ningbo Joyson, and other bidders have favoured a
court-led process to cap their exposure to Takata's existing
liabilities, sources have said. Those liabilities are estimated
by some analysts to be as high as $10 billion for recall costs
Such an option could deal a huge blow to shareholders,
including the founding Takada family, a major investor. Takata
argues that a court-led restructuring could disrupt its
supply-chain and affect its ability to pay suppliers.
Swedish air bag maker Autoliv Inc had also been
bidding to lead Takata's restructuring, sources have told
(Reporting by Junko Fujita and Naomi Tajitsu; Editing by
Chang-Ran Kim and Edwina Gibbs)