Meaning of zombie company | Babel Free

Definitions

A company that requires bailouts in order to operate, or an indebted company that is able to repay the interest on its debts but not repay the principal.

Examples

“Mostly, though, the people in a zombie company will be blissfully unaware that they are in the middle of a major business disaster until after it has unfolded.·”

“Pure zombie companies satisfy all the criteria to be considered zombi companies after adjusting the ICR and CLR ratios for the connected legal entities' financial expenses and short-term financial liabilitites.”

CEFR level