The company is planning bankruptcy filings in both the U.S. and Japan, and has tentative plans to sell operations to rival firm Key Safety Systems for $1.6 billion, sources told the Journal.
Sumitomo Mitsui Banking is reportedly providing the company with bankruptcy financing, the report said.
The auto parts supplier made the airbag components that spawned lawsuits against several major automakers after the devices were linked to deaths and injuries. The company pleaded guilty to criminal wrongdoing and was told to pay $1 billion in penalties for giving automakers misleading safety reports on the airbag systems.
In the U.S., 19 automakers are still recalling the 42 million vehicles outfitted with Takata airbags, the Journal said.