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TK Holdings Inc.

On June 25, 2017, TK Holdings Inc. ("TK Holdings"), Takata Americas, TK Finance, LLC, TK China, LLC, TK Mexico Inc., TK Mexico LLC, Interiors in Flight, Inc., Takata Protection Systems Inc., TK Holdings de Mexico S. de R.L. de C.V., Industrias Irvin de Mexico, S.A. de C.V., Takata de Mexico, S.A. de C.V. and Strosshe-Mex, S. de R.L. de C.V. (collectively, the "Chapter 11 Debtors") filed voluntary petitions for relief under chapter 11 of title 11 of the United States Code (the "Bankruptcy Code") in the United States Bankruptcy Court for the District of Delaware (the "Chapter 11 Proceedings"). Concurrently, albeit on June 26, 2017 in Japan, Takata Corporation, Takata Kyushu K.K. and Takata Service Corporation (the "Japanese Debtors", and collectively with the Chapter 11 Debtors, the "Debtors") initiated civil rehabilitation proceedings with the 20th Department of the Civil Division of the Tokyo District Court under the Civil Rehabilitation Act of Japan (the "Japanese Proceedings", and collectively with the Chapter 11 Proceedings, the "Foreign Proceedings"). The Chapter 11 Debtors obtained certain First Day Orders (listed below) from the U.S. Court on June 27, 2017. Further information on the Chapter 11 Proceedings can be found on the following website: https://restructuring.primeclerk.com/takata/Home-Index

On June 26, 2017, Takata Corporation, Takata Kyushu K.K., and Takata Service K.K. (collectively, "Takata Japan"), have commenced a proceeding under the Civil Rehabilitation Act ("CRA") in Tokyo, Japan. Parties who believe they have claims against Takata Japan can obtain information about the CRA proceeding, including the deadline to file claims (August 25, 2017) at http://www.takata.com

On June 28, 2017, TK Holdings, as the foreign representative of the Chapter 11 Debtors, obtained an order of the Ontario Superior Court of Justice (Commercial List) (the "Canadian Court"), among other things, granting a stay of proceedings against the Chapter 11 Debtors pursuant to Part IV of the Companies' Creditors Arrangement Act (the "CCAA").

Also on June 28, 2017, the Canadian Court issued a supplemental order which, among other things, (i) appointed FTI Consulting Canada Inc. as an officer of the Court (the "Information Officer"), and (ii) recognized the following "First Day Orders" of the U.S. Court in the Chapter 11 Proceedings:

1. Order Directing Joint Administration of Chapter 11 Cases;

2. Order Appointing Prime Clerk LLC as Claims and Noticing Agent;

3. Interim Order (i) Authorizing Debtors to Enter into Accommodation Agreement with Certain Customers, (ii) Granting Adequate Protection to Certain Consenting OEMs in Connection Therewith, (iii) Modifying the Automatic Stay to Implement and Effectuate the Terms of the Interim Order, and (vi) Scheduling a Final Hearing;

4. Interim Order (I) Authorizing Debtors to (A) Continue Their Existing Cash Management System, (B) Honor Certain Prepetition Obligations Related to the Use Thereof, (C) Provide Certain Postpetition Claims Administrative Expense Priority, (D) Continue Intercompany Funding of Certain Non-Debtors, and (E) Maintain Existing Bank Accounts and Business Forms; and (II) Extending Time to Comply with Requirements of 11 U.S.C. § 345(b);

5. Interim Order to (I) Pay Prepetition Wages, Salaries, and Other Compensation and Benefits, and (II) Maintain Employee Benefit Programs and Pay Related Administrative Obligations;

6. Interim Order to Pay Prepetition Obligations Owed to Certain Critical Vendors;

7. Interim Order Authorizing the Debtors to (I) Pay Prepetition Obligations Owed to Certain Foreign Vendors and Lien Claimants and (II) Grant Administrative Status for Certain Goods Delivered to Debtors Postpetition;

8. Interim Order to (I) Continue Tooling and Warranty Programs in the Ordinary Course of Business and Pay Prepetition Obligations Related Thereto, and (II) Authorize Banks to Honor and Process Related Checks and Transfers;

9. Interim Order to Continue Insurance Programs and Pay All Obligations With Respect Thereto;

10. Interim Order to (I) Pay Certain Prepetition Taxes and Assessments, and (II) Authorize Banks to Honor and Process Related Checks and Transfers;

11. Interim Order (I) Approving Debtors' Proposed form of Adequate Assurance of Payment to Utility Companies, (II) Establishing Procedures for Resolving Objections by Utility Companies, and (III) Prohibiting Utility Companies from Altering, Refusing, or Discontinuing Service;

12. Order Enforcing the Protections of 11 U.S.C. §§ 362, 365, 525, and 541(c);

13. Order authorizing TK Holdings, Inc. to Act as Foreign Representative on Behalf of the Debtors' Estates; and

14. Order Implementing Certain Notice Procedures and Approving the Form and Manner of Notice of Commencement.

Copies of future Canadian Court orders, reports of the Information Officer and other materials relating to these proceedings will be available on this website.

For additional information please contact:
The office of the Information Officer
Phone: 416 649 8103
Toll Free: 1 888 999 3526
Fax: 416 649 8101
Email: tkholdings@fticonsulting.com

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