Bankruptcy Report (November 2008) JAPAN'S BUSINESS FAILURE IN NOVEMBER 2008 (Released by TEIKOKU DATABANK, LTD.) CASES OF BANKRUPTCIES AND AMOUNT OF LIABILITIES (Liabilities: in million yen) Bankruptcies: 1,010 (down 18.0% below 1,231 in Octorber 2008) (up 11.5% over 906 in November 2007) Liabilities: 541,165 (down 44.7% below 979,015 in Octorber 2008) (up 18.3% over 457,604 in November 2007) Research subject: Bankrupt companies with liabilities of 10 million yen or more Companies filed for legal bankruptcy HIGHLIGHT AND OUTSTANDING FEATURE [Main points of November 2008] - The number of bankruptcies totaled 1,010 cases, falling below the previous month’s level by 18.0% but exceeding the year-ago level by 11.5%. The number showed a year-on-year increase for the sixth consecutive month. The cumulative total so far in 2008 reached 11,534 cases and already surpassed the annual total in 2007. - Total liabilities came to 541,165 million yen (979,015 million yen in the previous month, and 457,604 million yen in the year-ago period), decreasing 44.7% from a month earlier. The amount, however, went up by 18.3% from the preceding year, recording a year-on-year rise for three months in a row. - By industry, every industry registered a year-on-year increase in the number of bankruptcies for the third straight month. In particular, the transportation & communications industry (38 cases), the wholesale industry (170 cases) and the service industry (189 cases) posted prominent increases. - By main cause, the number of recession-induced bankruptcies totaled 802 cases, increasing 11.5% compared with the same month last year. Its percent distribution is 79.4% of the total bankruptcies. Affected by the ongoing economic recession, the number has hovered at a high level of around 80%. - By size of liabilities, the number of bankruptcies with liabilities of less than 50 million yen stood at 408 cases, and its percent distribution makes up 40.4% of the total. On the other hand, the number of large corporate failures with liabilities of 5 billion yen or more came to eight cases, falling below 10 cases for the first time in one year and three months since August 2007. - By region, seven regions including Kanto (381 cases) and Kyushu (79 cases) showed year-on-year increases in the number of corporate failures. Especially, the number in Hokuriku (49 cases) hit the highest level since April 2005 when the research subject was changed to the present one. - In November, three of the listed companies went bankrupt. The accumulated number of bankruptcies of listed companies so far in 2008 reached 31 cases (one bankruptcy of a delisted company included). The number topped 29 cases recorded in 2002, setting a postwar record for the first time in six years.