Re:Economist Mohamed El-Erian warns about the risk of 'zombi...
by icedchai on Wednesday June 17, 2020 @12:35PM
(#23553370)
It's no worse than startups that went public during the dot com era. At least these bankrupt companies have some operating history and physical assets.
[ Parent
| on HN ]
Re:Economist Mohamed El-Erian warns about the risk of 'zombi...
by saint_abroad on Wednesday June 17, 2020 @01:09PM
(#23553852)
Dot-com paper companies that had no assets and no revenue also had no debts.
Here, we're talking about the vastly different proposition of raising equity in a company where debts outstrip assets.