Zombie Hordes: Thousands of Japanese Firms Dodging Bankruptcy
- Fall in bankruptcy rate due in part to easy refinancing terms
- Excess competition weighs on prices, misallocates resources
Here's Why Japanese Firms Manage to Dodge Bankruptcy
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The owner of a car repair business in northwest Tokyo has been digging into his retirement fund to keep his shop going. He’s in his mid-sixties, he’s not making money and he knows he’ll eventually have to close down.
But for now, he’s managing to keep hold of his single remaining mechanic by deferring his loan repayments time after time.