Nov 15, 2000 - 11:17 AM

Bankruptcies in Japan Rose 22.7 Percent, Debt Reaches Postwar High The Associated Press

TOKYO (AP) - Japanese corporate failures surged 22.7 percent in October from the same month last year, and liabilities reached a post-World War II high, a private research firm said Wednesday. A total of 1,711 companies failed in October, and the debts they left behind were 8.561 trillion yen ($79 billion)- double the previous record 4.264 trillion yen set in July, said Teikoku Databank said.

The failures reflect the continuing weakness of the Japanese economy, which is slowly emerging from its deepest slowdown in 50 years. The number of failed companies has been on the rise for 12 consecutive months.

The figures for October also showed a postwar record high for company failures blamed on the economy. Such bankruptcies accounted for 77.4 percent of the total, surpassing the previous record of 76.6 percent in July and September.

These companies failed because of dwindling sales, falling exports, rising bad debts or sluggish industry, said Teikoku Databank official Jiro Shinguu.

October's data also showed a further rise in corporate failures in the construction industry, which accounted for 34.2 percent of the total, Shinguu said.

The collapse of two life insurers during the month - Kyoei Life Insurance Co. and Chiyoda Mutual Life Insurance Co - was a major factor behind the surge in bankruptcy and liabilities, he said.

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-- Carl Jenkins (somewherepress@aol.com), November 15, 2000