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Private equity

‘Zombies’ haunt private equity companies

By Martin Arnold, Private Equity Correspondent

Published: March 24 2008 20:10 | Last updated: March 24 2008 20:10

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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