Tokyo- Troubled air bag maker Takata Corp. on Monday filed with Tokyo District Court for bankruptcy protection under Japan's civil rehabilitation law, in the largest manufacturing business failure in postwar Japan.

The court accepted the bankruptcy filing, decided at a meeting of Takata's board earlier on Monday. The Tokyo Stock Exchange said it will delist Takata shares on July 27.

Including costs for its massive global recall of rupture-prone air bags that have been provisionally shouldered by client automakers, Takata's liabilities are estimated to reach 1.7 trillion yen, the largest amount for any failed manufacturer in Japan since the end of World War II, according to Tokyo Shoko Research Ltd., a credit research firm.

Takata will now work for a turnaround under court supervision and the sponsorship of Chinese-affiliated US auto parts maker Key Safety Systems Inc.

Takata said it has reached a basic agreement to sell most of its assets and operations to KSS for $1,588 million, or 175 billion yen. The transaction is expected to make KSS a leading global automotive supplier operating in 23 countries with a workforce of about 60,000 people.

The Japanese company will receive up to 25 billion yen in debtor-in-possession financing from Sumitomo Mitsui Banking Corp., a unit of Sumitomo Mitsui Financial Group Inc., as well as separate financial support from related automakers.

Two domestic subsidiaries of Takata made bankruptcy filings under the law, while 12 overseas units, including Michigan-based TK Holdings Inc., filed for Chapter 11 bankruptcy in the United States on Sunday local time.

Takata aims to complete its rehabilitation process by June 2018.

"We deeply apologize for causing great inconvenience to concerned people," Takata chairman and chief executive officer Shigehisa Takada, 51, from the company's founding family, told a press conference on Monday.

He expressed his readiness to step down by the end of March 2018. (Jiji Press)