Can Zombie Firms Survive Rising Interest Rates?

Image credit: HBR Staff / NoDerog / shalunx13 / Getty Images. Article by Walter Frick. Harvard Business Review – updated September 07, 2022.

Summary. Companies that can’t pay their debts are supposed to turn things around or go out of business. But across the world, a rising number of “zombie firms” are limping along, unable to pay their debts but somehow hanging on. Now, with interest rates rising, the question is whether the zombies will start dying off. If they do, it could be painful in the short run. But it might present acquisition opportunities for stronger companies, too. […]

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