He passed away on Christmas Day at age 75. In my opinion, he was the great guitar improvisor of the last few decades and will be especially remembered for extending the guitar technique. Had the wonderful chance to hear him play twice and once sit and play with him in a workshop setting. Aside from his musicianship, he had an excellent reputation for supporting and assisting younger musicians getting started, and there's also Incus Records that Bailey helped start back in the 1970s that is still one of England's best independent jazz and improv labels.
Jazz Times tends to have good obits. Which, in jazz, seem to be pretty frequent these days.
While you're thinking abour Bailey, also check out his long-time collaborator Gavin Bryars's web pages. Yes, there is more to his music than either the "Jesus blood" or Titanic pieces.
And, what's this? There's a biography of Derek Bailey out in the UK! Ah yes, Ben Watson from The Wire and the (in)famous Zappa biography.