Bankruptcies rise 23% [in Japan], leaving record debts
The number of corporate bankruptcies jumped 23.4 percent
to 19,071 in 2000, with liabilities left by the bankrupt firms
reaching a new postwar high, Teikoku Databank said
Friday.
japantimes.co.jp
Total liabilities surged 77 percent to 23.99 trillion yen,
surpassing the 20 trillion yen mark for the first time and far
exceeding the previous record of 14.38 trillion yen set in
1998, the private credit research agency said.
The number of bankruptcies marked the first year-on-year
rise in two years and was the fourth largest in the postwar
period. The data covered bankruptcies with liabilities of 10
million yen or more.
Teikoku Databank attributed the increase in liabilities to a
series of large-scale bankruptcies in such firms as life
insurers, listed nonbank financial firms and major
companies in the distribution sector.
Failures of listed companies came to a record 12 cases,
topping the previous record of 11 cases in 1965.
Of the 12, eight firms listed on the First Section of the Tokyo
Stock Exchange went bust, matching the previous record in
1997. Among the eight firms were retailers Nagasakiya Co.
and Sogo Co. as well as nonbank financial firms Nichiboshin
Ltd. and Life Co.
Recession-induced bankruptcies totaled 14,372 cases, a
record high in the postwar period. The ratio of such failures
hit a new postwar high of 75.4 percent, exceeding the
previous record of 72 percent set in 1999.
In December alone, the number of corporate bankruptcies
rose 0.2 percent from a year earlier to 1,550 for the 14th
consecutive monthly increase, with liabilities jumping 111.9
percent to 831.9 billion yen, Teikoku Databank said.
"Looking ahead, consumer spending is slack and intensified
deflationary trends are observed with slow demand and
sharp price falls amid cutthroat competition," Teikoku
Databank said. "Reflecting these trends, the number of
companies on the verge of collapse is on the rise as an
increasing number of companies are faced with a sharp fall
in sales and difficulties repaying their debt.
"The number of corporate failures is likely to increase
further toward the end-of-fiscal year month of March."
The Japan Times: Jan. 20, 2001
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