Any horror aficionado knows that the only good zombie is a dead zombie. Worried about layoffs and soured loans, governments and banks across Asia continue to dole out cheap financing and other support to keep failing firms -- corporate zombies -- alive. Less than two years have passed since Daewoo Shipbuilding received an earlier bailout of fresh loans and a debt-for-equity swap. Zombie companies deprive healthy firms of expansion opportunities and create barriers to entry for new, young companies -- all of which suppresses investment. Factories that can only survive under such protection wouldn't technically be zombies, but they'd have a similar effect on the economy.

Source: Bangkok Post April 03, 2017 19:30 UTC