zombie company
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English[edit]
Noun[edit]
zombie company (plural zombie companies)
- (business, finance) 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.
- Synonym: zombie business
- 2004, Sydney Finkelstein, Why Smart Executives Fail:
- 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.·
- (Can we date this quote?), Branko Radulović, Stefan Dragutinović, “Did COVID-19 Relief Programs Reanimate Zombie Companies?”, in Marko Mihić, Sandra Jednak, Gordana Savić, editor, Proceedings of the XVIII International symposium Symorg 2022, page 211:
- 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.