Corporate bankruptcies in Japan in 2010 fell 13.9% from a year earlier to 13,321 for the second consecutive year of drop, slipping below the 14,000 line for the first time in four years, but the amount of debts left by the failed firms rose due to a series of failures of big firms, such as Japan Airlines Corp, a credit research firm said Thursday.
Tokyo Shoko Research said while the drop in 2010 failures was attributable to government measures such as an emergency loan guarantee system and other financial aid for small businesses, the pace of decline in corporate failures slowed toward the end of the reporting year as the effects of the government’s measures were fading.
Liabilities that accompanied the corporate failures totaled 7.16 trillion yen in 2010, up 3.3% from a year earlier. Seven cases of large-scale failures, which left behind at least 100 billion yen in liabilities each, accounted for more than half the total debt amount.
Of the seven, the three biggest failures were JAL and its two units, with 2.32 trillion yen in debts, Incubator Bank of Japan with 680.5 billion yen in liabilities, and consumer loan firm Takefuji Corp, which had 433.6 billion yen in debts.
Business failures in Japan fall 14% in 2010 › Japan Today: Japan News and Discussion
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