Takata's liabilities to be left following the possible bankruptcy filing are seen totaling some one trillion yen, the largest amount for any failed Japanese manufacturer since the end of World War II, according to the sources.

The embattled air bag maker is in talks on its turnaround with US auto parts producer Key Safety Systems Inc., which is expected to become Takata's bailout sponsor, and client automakers that have so far shouldered costs for the huge recall.

The management team of Takata, led by Chairman and President Shigehisa Takada, 51, from its founding family, has been seeking the company's reconstruction out of court.

But Takata now sees no choice but to consider filing for a court-led process as many client automakers have been pressing it hard to choose the option to ensure transparency of its rehabilitation, the sources said.

Takata's US subsidiary is expected to file for Chapter 11 bankruptcy protection in the United States, the sources said.

As of the March 31 end of fiscal 2016, Takata's liabilities totaled 397.8 billion yen. But potential claims for recall costs are expected to boost the total liabilities above one trillion yen.

Takata has a share of 20 pct in the global air bag market.

At least 11 people have been killed by ruptures of defective Takata air bags in the United States, while more than 180 people were wounded around the world.

Takata, set up in 1933 as a textile maker, listed its stock on the first section of the Tokyo Stock Exchange in 2006.

In fiscal 2016, the company suffered its largest-ever group net loss of 79.5 billion yen. It operates plants in about 20 countries. As of the end of fiscal 2016, Takata had some 46,000 employees on a consolidated basis.

The founding family owns about 60 pct of outstanding shares in the company. (Jiji Press)