The large number of corporate bankruptcies in 2008 shows how badly the global downturn has slammed the Japanese economy. The government should pay special attention to the fact that many companies in the black went under due to cash-flow problems.
According to Tokyo Shoko Research, 2008 saw 15,646 bankruptcies (each involving at least ¥10 million in debts) — an 11 percent increase over 2007 and above the 15,000 mark for the first time in five years. Among the failed companies were 33 listed companies, the highest number since the end of World War II.
The total amount of debt left by failed companies more than doubled from 2007 to ¥12.29 trillion. The figure was pushed up as the Japanese arm of U.S. investment bank Lehman Brothers Holdings and its affiliates left more than ¥4 trillion in debt.