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The growing problem of zombie companies

The definition of zombie firms as those which struggle to service debt obligations maybe be too simple a way to characterise them, but it is a place to start. That said, firms which reinvest in their businesses through Research and Development (R&D) and increasing brand value should have a better chance of survival than those who do not. It may also be that many firms will simply slow down their economic activity, wait out a difficult period (like hibernation) and then re-emerge. Airlines (like Boeing) would be good examples of this type of firm. They might raise equity capital as well, to reduce their debt load, in this re-emergence.

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