Thursday, November 22, 2012

Zombie allusions: They just keep on coming-operating Scottish companies

http://www.business7.co.uk/business-news/scottish-business-news/2012/11/22/scottish-zombie-company-rate-double-uk-average-106408-23941987/


Scottish 'zombie' company rate double UK average






Insolvency trade body R3 suggests 30,600 Scottish companies only managing to service interest on debts
"The number of so-called 'zombie' companies operating in Scotland is double that of the rest of the UK, insolvency trade body R3 suggests.
This equates to 30,600 companies operating in Scotland, with similar rates reported in Northern Ireland.
Zombie companies, defined as those who are paying the interest on debt but not able to reduce the principal debt level, now account for 18 per cent of Scottish businesses, the R3 research suggests.
Those companies are generating just enough cash to service debts meaning lenders are reluctant to call in loans."

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