Zombie companies are companies that are unprofitable... per Joshua Konstantinos

"Zombie companies are companies that are unprofitable — so unprofitable they are unable to pay even the interest on their debt out of their profits. They are effectively bankrupt but kept alive by banks continuing to lend them money to pay their existing loans...... Zombie companies are kept alive only with low interest rates and/or lax banking regulation. But as bankers assembled last month in Stockholm for the annual meeting of the International Capital Markets Association pointed out: 'The question is, with the debt level where it is, can central banks ever afford to let interest rates go back up because it will lead to a major bankruptcy wave.' Zombie companies pose a significant challenge for central banks, because in a very real sense their hands are tied — they cannot raise interest rates significantly without causing a huge number of companies to go bankrupt." --- Joshua Konstantinos

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