Takata shares plummeted by more than 50 percent in early trade Thursday on fears the troubled airbag maker plans to file for bankruptcy and sell its assets to a US company.
The company at the centre of the global auto industry’s biggest-ever safety recall has tumbled for four straight days and is now worth less than a quarter of its value a week ago.
The shares dropped by their maximum daily loss limit on the Tokyo Stock Exchange to 115 ($1.10), falling by more than 50 percent from its Wednesday close.
The huge losses stem from a report last week by Japan’s Nikkei business daily which said the company, with liabilities exceeding one trillion yen ($9 billion), would make a formal decision about the bankruptcy filing at a board meeting this month.
Some other media have made similar reports, saying Takata’s automaker clients were supporting the bankruptcy plan.
On Wednesday, Jiji Press reported the airbag maker will file for bankruptcy protection on Monday, while other media suggested it could come as early as this week.