Zombie Company

A Zombie Company is a financially distressed business that continues to operate despite being unable to cover its debt interest payments from operating profits. These companies often rely on continuous refinancing or government support to survive, rather than on generating sustainable earnings.

Zombie companies typically exhibit:

• Stagnant revenue growth.

• Persistent debt servicing issues.

• Weak operational performance.

Their survival consumes capital and resources that could otherwise be deployed toward healthier, more innovative enterprises, potentially distorting competitive markets and overall economic productivity.