Companies that continue to operate despite being in a state of bankruptcy, such as not making requisite payments, being insolvent due to accumulated losses, or having excess debt and repeatedly rescheduling repayments, are known as “zombie companies.” The Bank for International Settlements defines zombie companies as being at least 10 years old, and having an interest coverage ratio of less than one for at least three consecutive years. Based on these standards, Teikoku Databank calculated that the rate of zombie companies in Japan in fiscal 2020 was 11.3%, or 165,000. After the global financial crisis began in 2008, ... (full story)