As expected, embattled airbag maker Takata late on Sunday filed for bankruptcy protection in the United States and confirmed plans to sell many of its assets to Michigan-based Key Safety Systems (KSS).

Company news releases indicated Takata’s Chapter 11 bankruptcy process in the U.S. will be completed in the first quarter of 2018 as an agreement in principle to sponsor a restructuring plan for the sale of substantially all of Takata’s global assets and operations to KSS for an aggregate purchase price of approximately $1.588 billion, subject to certain adjustments at closing.

While a myriad of tasks need to be completed in both the U.S. and Japan, dealerships, auctions, wholesalers and vehicle owners who have a model with a defective airbag, the road ahead still remains uncertain.

“This will be a long process under the best of circumstances, and Takata going bankrupt, though not surprising, only adds to a potential increase in the time it takes to replace tens of millions of airbags,” Karl Brauer, executive publisher for Autotrader and Kelley Blue Book, said in commentary provided to the media.

“It’s likely every automaker involved in this recall will have to subsidize the process because the value of Takata’s assets isn’t enough to cover the costs of this recall. There are still far more questions than answers on this topic,” Brauer continued.

Under the agreement, KSS said it will acquire substantially all of Takata’s assets, except for certain assets and operations that relate to the company’s manufacturing and sale of phase-stabilized ammonium nitrate (PSAN) airbag inflators. It is expected that Takata’s PSAN-related operations will be run by a reorganized Takata following the transaction closing and eventually will be wound down.

Takata added that it expects to continue to meet demand for airbag inflator replacements without interruption.

No matter what the parts companies are declaring, Autotrader executive analyst Michelle Krebs reiterated points she also made as serious conjecture about Takata’s bankruptcy plans began to surface earlier this month.

“Owners of cars with recalled Takata airbags should be assured, even though Takata has filed for bankruptcy, the manufacturer of their vehicles ultimately is responsible for providing replacement airbags,” Krebs said in the same commentary.

“Owners need to contact their dealer for free repairs. The replacement airbags may not be immediately available, but they should get their name on a list for when they become available,” she continued.

Meanwhile, another wrinkle in the entire matter is the civil lawsuits. Peter Prieto is the court-appointed chair lead counsel for the consumer plaintiffs in the Takata Airbag Product Liability Litigation.

“We do not expect a Takata bankruptcy to have an impact on claims pending against auto manufacturer defendants for their role in the airbag scandal,” Prieto said. “Settlement agreements with Toyota, Subaru, BMW and Mazda have already received preliminary approval from the MDL Court, and will accelerate the removal of dangerous airbag inflators from 15.8 million vehicles and compensate consumers for economic losses associated with the recall.

“We will continue fighting for our clients and prosecuting claims against Honda, Ford, Nissan, as well as Takata, to make sure all affected consumers receive the recourse they deserve,” he added.

Prieto mentioned preliminary approval was granted on June 12 to class action settlement agreements that resolve economic loss claims against BMW, Mazda, Subaru and Toyota. The settlements are pending in the Southern District of Florida as part of the multidistrict litigation currently being overseen by Judge Federico Moreno. A final approval hearing will be held on Oct. 25.

Nonetheless, the top executives at KSS and Takata conveyed upbeat messages about how their companies are moving forward.

“Takata has deep management talent, a dedicated work force and a long history of exceptional customer service,” KSS president and chief executive officer Jason Luo said. “Although Takata has been impacted by the global airbag recall, the underlying strength of its skilled employee base, geographic reach and exceptional steering wheels, seat belts and other safety products has not diminished.

“We look forward to finalizing definitive agreements with Takata in the coming weeks, completing the transaction and serving both our new and long-standing customers while investing in the next phase of growth for the new KSS,” Luo continued.

Takata chairman and CEO Shigehisa Takada added, “KSS is the ideal sponsor as we address the costs related to airbag inflator recalls, and an optimal partner to the company’s customers, suppliers and employees. The combined business would be well positioned for long-term success in the global automotive industry.

“Throughout this process, our top priorities have been providing a steady supply of products to our valued customers, including replacement parts for recalls, and a stable home for our exceptional employees. This agreement would allow that to continue,” Takada went on to say.

And as the company navigates bankruptcy in the U.S. as well as what’s known as civil rehabilitation proceedings in Japan, Takata pointed out that Japanese OEMs have committed to provide Takata with “valuable accommodations and liquidity enhancements.” What’s known as debtor-in-possession (DIP) financing includes a commitment for up to a $227 million revolving credit facility.

Upon approval by the supervisor appointed by the Tokyo Court and approval by the Delaware Court, officials explained financing in Japan and the accommodations and additional liquidity support from the customer group in both Japan and the U.S., along with Takata’s cash flow from operations, are expected to provide Takata with sufficient liquidity to continue to operate its business and serve automotive customers globally in the ordinary course and without any significant disruptions.

“The commencement of civil rehabilitation proceedings in Japan and the Chapter 11 filing in the U.S. should have no effect on the ability of drivers to get replacements for recalled Takata airbag inflators free of charge,” the company said.