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Legal News

How can ‘zombie firms’ survive a rise in interest rates?

Published on: 20 November 2012

Table of contents

  • Original news:
  • What effect will the rise in interest rates have on ‘zombie firms’
  • What should zombie firms do now to be prepared when interest fees rise?
  • What should in-house lawyers and those advising zombie firms keep in mind?
  • With only 10% of struggling companies estimated to survive, what can the remaining 90% do to make their possible demise as smooth as possible for all parties involved?
  • Should viable firms now get into starting position to expand?

Article summary

Restructuring and Insolvency analysis: Amid warnings that a rise in interest rates could lead to the collapse of ‘zombie firms’, debt-laden companies only surviving due to rates remaining low, Frances Coulson, former president of R3, the insolvency trade body, and a partner and head of insolvency and business recovery at Moon Beever, offers advice on how struggling firms can be prepare effectively.

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