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No. of bankruptcies in Japan up in April-Sept for 1st rise in 3 years

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The rise was attributable to difficulties companies experienced in repaying financial aid they had received from the government in response to the COVID-19 pandemic, Tokyo Shoko Research said.

And of course these corporations have that wonderful, uncompensated, always on the hook loan guarantor, the Japanese working taxpayer.

8 ( +13 / -5 )

The rise was attributable to difficulties companies experienced in repaying financial aid they had received from the government in response to the COVID-19 pandemic, Tokyo Shoko Research said.

This is what happens when people owe the government money here. Just like taxes, the government gets their money first.

But these loans were to assist businesses during the pandemic, and seeing as how things have not really gotten any better yet, the government SHOULD be working with these folks and not bankrupting them!

6 ( +12 / -6 )

I agree that, at least for certain sectors of business (e.g. tourism), 2022 is too soon to start repaying loans. In other cases (i.e. those businesses that emerged during the pandemic), it might be better to rip the bandaid off.

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The total liabilities left by bankrupt companies surged three times to 1.74 trillion yen ($11.70 billion) in the six-month period, buoyed by Marelli Holdings Co, a major auto parts maker that filed with a court for protection in June under Japan's civil rehabilitation law.

I suspect Ghosn may have had a hand in this Marelli deal. It stunk even before the money men arrived on the scene.

Who would have thought merging with a legacy automotive components maker would make good business sense. Especially when Teslas have no Engine, ECU, heat exchange, instrument cluster......

-2 ( +2 / -4 )

the sooner they end all the stupid covid rules and quasi rules the better

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The number of corporate bankruptcies in Japan rose 6.9 percent in the April-September period from a year earlier to 3,141 

What's the definition of a "corporate bankruptcies"?

I can almost guarantee this doesn't include things people actually care about, like restaurants.

2 ( +3 / -1 )

the government SHOULD be working with these folks and not bankrupting them!

So you want the government to forgive these debts for those irresponsible companies who had no savings to whether the downturn. While responsible companies get no benefit. Great idea.

-3 ( +2 / -5 )

By industry, the transport sector posted 162 bankrupt cases, up 42.1 percent for the first increase in three years, propelled by high fuel prices.

42% is is a big number. I'm curious are these one man - one car delivery companies?

0 ( +1 / -1 )

I agree that, at least for certain sectors of business (e.g. tourism), 2022 is too soon to start repaying loans

Contrary to popular belief, most tourism is doing just fine. Foreign tourists got replaced by domestic tourists.

-7 ( +1 / -8 )

""The rise was attributable to difficulties companies experienced in repaying financial aid they had received from the government in response to the COVID-19 pandemic, Tokyo Shoko Research said""

It was reported that many FAKE companies were also established to get COVID support, and then they went bankrupt when the funds were received, are these firms included?

What about the private sector? any data ? people are struggling and probably many don't know how to get the help they need or ashamed to file for bankruptcy.

3 ( +3 / -0 )

So you want the government to forgive these debts for those irresponsible companies who had no savings to whether the downturn. While responsible companies get no benefit. Great idea.

So, you try to put words into my mouth that I never stated.

I specifically stated "work with them", which does not mean forgive the debts! Working out payments, is something they CAN do, and there is no reason to force them into bankruptcy!

6 ( +6 / -0 )

The number of corporate bankruptcies in Japan rose 6.9 percent in the April-September period from a year earlier to 3,141 for the first increase in three years, according to a survey by a credit research company.

It's seen from one angle. How about the number of newly launched businesses or going public during the research period? Right now is an upheaval and transitional time. Down on the street I've observed new tenants fulling commercial and office spaces hitherto closed due to the pandemic. Feels good.

-1 ( +0 / -1 )

It's seen from one angle. How about the number of newly launched businesses or going public during the research period? Right now is an upheaval and transitional time. Down on the street I've observed new tenants fulling commercial and office spaces hitherto closed due to the pandemic. Feels good.

Well said. The data is backward looking. New shops open and Old shops close, it is the normal cycle.

-5 ( +0 / -5 )

Already with the tourist entrance many things will improve..

the sooner they end all the stupid covid rules and quasi rules the better

The anti-science brigade won't stop to whine..

-2 ( +1 / -3 )

I specifically stated "work with them", which does not mean forgive the debts! Working out payments, is something they CAN do, and there is no reason to force them into bankruptcy!

I agree with you but there’s different types of bankruptcy. Chapter 7, 11 or 13. I wonder if there are equivalent in Japan as well.

0 ( +1 / -1 )

so this is your "new capitalism" Fumio?

-1 ( +1 / -2 )

He didn’t say that the new capitalism doesn’t include new bankruptcies. Well, but admitted, he also didn’t say that the new capitalism consists so far of only bankruptcies. lol

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Boy I wonder what over exaggerating policies for the past 2.5 years could have caused this?

-2 ( +0 / -2 )

The owners of this companies probably found it was a good time to close their business instead of adjusting to a different model , mostly the ones that already had used the money to buy real estate for rent instead of paying to the suppliers, increasing the salaries or investing for competitiveness.

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The rise was attributable to difficulties companies experienced in repaying financial aid they had received from the government in response to the COVID-19 pandemic, Tokyo Shoko Research said.

This was obvious from the start. Japan's mishandling of the Covid crisis still crushing their economy.

-1 ( +0 / -1 )

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