2010.07.0804:47:00UTC+00Japan's Corporate Bankruptcies Continue To Drop In June

The number of corporate bankruptcies in Japan dropped for an eleventh straight month in June, data released by Tokyo Shoko Research showed Thursday.

According to the research firm, the number of bankruptcies fell 19.2% year-on-year to 1,148 cases in June. Total debt decreased 40.5% to JPY 283.8 billion. The firm noted that no listed companies faced bankruptcy in June.

It also said ongoing economic recovery and government support for small businesses led to continued decline in the number of corporate bankruptcies. The firm also reported that bankruptcies rose 12.4% in June from May, while the debt involved decreased 14.3%.

Another report from Teikoku Databank showed that there were 1,085 bankruptcies in June, down 16.2% from the same month last year. The number of bankruptcies in June decreased from a year earlier for the tenth consecutive month but exceeded 1,000 for the first time in three months since March 2010. Compared to May, bankruptcies increased 23.4%. Liabilities totaled JPY 283.72 billion, down 6.8% from the previous month, and down as much as 40.2% from the same month last year.

Teikoku report showed that there were only 5,989 bankruptcies in the first half of 2010, down 14.7% from 7,023 bankruptcies in the same period of last year, marking the first year-on-year decrease in the first half since April 2005. It was also the second consecutive six-month period in which the number of bankruptcies decreased from the preceding six months. Liabilities totaled JPY 4.15 trillion, decreasing from the same period of last year for the first time in three years.

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