zombie company

English

Noun

zombie company (plural zombie companies)

  1. (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.
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