Record numbers of big companies start to line up in the bankruptcy courts

According to recent data from the Justice Ministry a record number of applications for bankruptcies, over 45% more than last year, has reached the courts. According to Prawo i Gospodarka their number, which stands at 6,448 will probably increase judging by financial results of companies that are coming in. According to the Central Statistical Office (GUS) almost 37% of medium and large companies are in deficit - which is 3% more than last year. The wave of bankruptcies became stronger in the second half of 2001, when bankruptcy applications equaled the total number of bankruptcies in 2000. While those becoming unemployed as a result of bankruptcies increased by 241,000 for in 2001, while this figure reached over a quarter of a million in the first two months of this year. There is no data about the bankr uptcies of small companies, which constitute about 99% of businesses, because there are no legal requirements for small companies to register their bankruptcies in the courts. The number of small companies taken out of Regon register in 2001 was lower by 29,000 than in 2000. However this number may be due to the fact that many companies suspended their businesses and are waiting for the economic situation to improve. (Prawo i Gospodarka, pp. 1, 9) P.W.