

Richard Katzman
Managing Director | On Call Leadership | Helping Small and Family Businesses Navigate Through Crisis and Turnaround
Zombie companies have chronic, unresolved structural issues that render it to be a non-viable and unsustainable business with excessive debt burden for the levels of profitability and cash flow generated. Yet, the business continues to survive due to ongoing and typically irrational, inertia-driven support of their lenders or political systems, by virtue of extending or resetting debt terms, extending additional funding, or shielding from collections and liquidation. Zombie companies are unable to adequately service their debt obligations, with a material debt service coverage shortfall during any given period and in foreseeable future.
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