A total 1,189 companies in Japan declared bankruptcy in April, down 21.5 percent from a year earlier for the 16th consecutive month of decrease.
Teikoku Databank Ltd. said Wednesday that the amount of debt was the 11th largest and the number of bankruptcies the 19th largest for any April in the postwar era.
The credit research company said that combined debts left by the failed companies fell 32.2 percent to 611.93 billion yen, slipping below 1 trillion yen for the first time in three months.
It said the report covered failures involving debts of 10 million yen or more.
It said the decline in the number of bankruptcies was mainly due to governmental financial aid for small and midsize companies under the "safety net" program, combined with a drop in the frequency of promissory notes being dishonored as more companies shift to cash payments.
More business for some smaller companies and nonmanufacturers stemming from greater capital outlays by large manufacturers also contributed to the decrease in bankruptcies, Teikoku Databank said.
A total 470 firms were forced to discontinue business under court-supervised proceedings, accounting for a record 39.5 percent of the April bankruptcies. The previous record was set in March, when the ratio was 39.1 percent.
Other bankruptcies allow companies to continue operations in procedures involving debt waivers and workforce downsizing.