Morimoto Goes Bust

Morimoto Co., a property developer, filed for protection from creditors with 162 billion yen ($1.7 billion) of debt, bringing the number of bankruptcies among publicly traded companies in Japan to a postwar record, Bloomberg reported. The bankruptcy is the second-largest in Japan this year following Urban Corp.’s filing on Aug. 13. The company’s filing with the Tokyo District Court pushed the total in 2008 to 30, the most since World War II, based on information from Teikoku Databank Ltd., a bankruptcy research firm. Twenty-three of the companies that went under are in the real estate and construction industries. Difficulty in obtaining financing amid the credit crisis forced the bankruptcy, Morimoto said today in a statement to the Tokyo Stock Exchange. The Tokyo-based company, established in 1983, will be delisted from the exchange on Dec. 29. It first sold shares to the public in February. Read more.