According to Kyodo, the leading news agency in Japan, the number of corporate bankruptcies soared to record highs in the first half of 2022.
In the first half of the fiscal year 2022, which started on April 1, the number of bankruptcies jumped for the first time in the last three years due to rising commodity prices and the weakening of the national currency.
The number of Japanese companies that declared bankruptcy from April to September of this year climbed by 6.9% compared to the same period in 2021. Apart from surging energy prices and the weak yen, companies experienced difficulties in repaying financial aid they had received from the government in response to the coronavirus pandemic. As a result, 3,141 firms were unable to pay back.
Marelli Holdings Co, a leading manufacturer of auto parts and one of the largest Japanese companies, filed with the Tokyo District Court for insolvency protection. It sent shockwaves through markets. The total liabilities left by bankrupt companies surged three times to ¥1.74 trillion ($11.7 billion).
