TOKYO - JAPANESE property developer Urban Corp. collapsed on Wednesday with debts of 2.4 billion dollars (S$3.37 billion) due to a slump in the housing market, the biggest bankruptcy in Japan this year.

The company said it had filed with the Tokyo District Court for protection from creditors following a slump in the nation's real estate market.

'Our company gave up self-resuscitation and decided to rebuild itself under the Civil Rehabilitation Law,' a company statement said.

Debts totalled 255.83 billion yen, making it this year's biggest bankruptcy yet in Japan, ahead of another troubled developer, Kei-r Co., which collapsed in April owing 167.7 billion yen.

The number of Japanese real estate firms going bankrupt has increased since the US 'subprime' mortgage crisis erupted last year, triggering a global credit crunch and weighing on Japan's economy. -- AFP