The number of corporate bankruptcies in Japan fell 18.7 percent in October from a year earlier to 1,387, down for the 10th consecutive month, Teikoku Databank Ltd. said Monday.
The failed companies left combined debts of 851 billion yen, down 55.8 percent from a year earlier and falling below 1 trillion yen for the first time in three months, the credit-research firm said in a report covering failures involving liabilities of 10 million yen or more.
Teikoku Databank said the slowdown in the number of bankruptcies has become significant as public assistance, including refinancing guarantees and special financing, helps keep the number from rising.
"Still, severe business environments with sales downturns have not improved, and government funding is temporarily delaying small and midsize firms from going under," Teikoku said in a statement.
Although the combined debts left by the failed firms fell below 1 trillion yen, the amount was the fifth-largest for October in the postwar period, the firm said.
By industry, declines in bankruptcies in the construction industry stood out, falling 19.7 percent from a year before. By region, declines in the Kanto region, including Tokyo, were significant, falling 14.7 percent.
Only one listed company went under in October: Morimoto Corp., a midsize construction firm listed on the Osaka Securities Exchange.
Of the October total, 1,036 firms collapsed due to recession-linked factors, including poor sales and inflated bad loans. Failures from such factors made up 74.7 percent of the total.
Failures of companies that had been in business for 30 years or longer numbered 368, accounting for 26.5 percent of the total.