Shares of Takata Corp tumbled on Tuesday after The Wall Street Journal reported late last week that the troubled Japanese air bag maker is weighing a U.S. bankruptcy filing as one option for clearing a path for an outside investor.
As of 0012 GMT, Takata shares dived more than 10 percent after remaining untraded with a glut of sell orders earlier.
Takata issued a statement on Tuesday saying the reported plan was not something it announced. Markets were closed in Japan on Monday for a public holiday.
Citing people familiar with the matter, the Wall Street Journal said on Friday Takata’s U.S. arm would seek protection from creditors in a federal bankruptcy court under preliminary plans being discussed.