Financial Times FT.com

'Zombies' that haunt private equity companies

By Martin Arnold, Private Equity Correspondent

Published: March 25 2008 02:00 | Last updated: March 25 2008 02:00

What do a Spanish clothing retailer, an Irish telecommunications group, a German maker of plastic packaging film and a French house-builder have in common?

They are all so-called "zombie" companies, bought by private equity in heavily leveraged deals shortly before the debt bubble burst last summer and now judged by investors to be worth less than they owe to creditors.

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