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Analysis-Fall of the zombies? Why corporate failures could surge in 2024

Debt-laden companies across Europe, Middle East and Africa face a $500 billion refinancing scramble in the first half of 2024, a challenge that could kill off many "zombie" businesses even though an expected peak in rates could bring some relief. Businesses facing rising debt costs after years of low rates will have to compete to secure enough cash in the biggest corporate refinancing rush seen for years, just as banks rein in risk ahead of stricter capital rules. A crunch is looming, finance industry experts said, with many weaker, smaller businesses seeking new private loans and public debt deals just as government borrowing costs - which influence loan rates - are soaring globally. ....

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Weil distress index shows UK companies at highest level since June 2020

Corporate distress levels in Britain accelerated in the three months to February to their highest since June 2020, an index compiled by law firm Weil Gotshal & Manges shows. ....

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