According to an Associated Press investigation, the number of the world’s debt-laden 'zombie' companies has risen, and they will have to pay off $1.1 trillion in loans by year-end.
The number of publicly traded "zombie" companies—those with debt so high they can't even afford the interest on their loans—has increased to about 7,000 worldwide, with 2,000 of them in the US, according to an Associated Press investigation.
And many of them may soon have to face their reckoning, as hundreds of billions of dollars in loan payments that they might not be able to make come due.
"They're going to get crushed," Valens Securities Managing Director Robert Spivey said of the weaker zombies.
The following are the main conclusions from the AP's analysis:
Companies that have not generated enough revenue from their operations over the last three years to cover even the interest on their loans are usually referred to as zombies. Their numbers have increased as a result of years of lo...
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