For Takata Corp., the embattled air-bag maker that’s seeking a buyer after causing the biggest safety recall in automotive history, Chinese-owned Key Safety Systems Inc. has emerged as the leading bidder.

While clarifying that no final decision has been made, the Tokyo-based supplier said in a statement that an external committee appointed to spearhead Takata’s restructuring recommends Key Safety. According to a person familiar with the matter, if the Japanese company files for bankruptcy protection and needs to sell some business units, Autoliv Inc. of Sweden is more interested in purchasing parts of Takata and it is the main rival of Key Safety in the auction.

On the issue of whether the company will go through court-led restructuring,  no decision has been made, Takata said. The company’s shares and bonds have plunged since reports that bidders are leaning toward such a step for the company as it will shield them from liabilities even though Takata has said it doesn’t envision reorganization through a court-led bankruptcy — which would disrupt the supply of parts.

An end to another long and difficult chapter for Takata would be brought if a deal is struck. In an agreement to pay U.S. regulators, consumers and car manufacturers $1 billion in penalties, the supplier has admitted to hiding the deadly risks of its exploding air bags for about 15 years. Seeking an acquirer that could get it through a costly restructuring process has been forced on the company by the mounting liabilities.

Expected to cover more than 100 million air bags is the recall of the company products. At least 17 deaths worldwide have been linked to the faulty products of Takata. Including the costs for replacing the air bags, and ensure a stable supply of replacement parts, and to minimize the supplier’s exposure to future liabilities, the new owner would have to work out a restructuring plan.

People familiar with the matter were quoted by the media claiming that negotiations will continue and a final agreement isn’t expected this weekend. One of the sources also said that due diligence hasn’t been completed by Key Safety, which is based in Sterling Heights, Michigan, and the company has also not secured exclusive negotiating rights as of Saturday in Tokyo.

While a call by the media to Autoliv’s offices outside regular business hours wasn’t returned, a Key Safety representative declined to comment. With revenue of $1.6 billion in 2015, Key Safety is the world’s fourth-largest air-bag maker and the company was bought by China’s Ningbo Joyson Electric Corp. last year for about $920 million. The combined company would pull closer in market share to leader Autoliv by buying takata and the deal would also give Key Safety greater access to Japanese automakers.

Autoliv “would, under certain conditions, be interested in certain parts or participating in this restructuring,” Chief Executive Officer Jan Carlson said on the company’s earnings conference call Feb. 2. “But this is, at the end of the day, an OEM decision,” he said, referring to the carmakers that carry Takata airbags in their vehicles.

To increase air-bag inflator production as Takata’s recalls boost demand, both Autoliv and Key Safety are adding manufacturing capacity.

(Adapted from Bloomberg)