Banks’ continuing reluctance to finance new deals or restructure existing loans threatens to create a swathe of “zombie credits” and is forcing private equity firms to take creative measures to finance deals.

A day after it emerged buyout firm Silverfleet Capital had approached more than 15 banks in a bid to secure financing for its €213m ($303m) buyout of sausage case manufacturer Kalle Nalo, statistics from ratings agency Fitch showed a worrying number of companies faced defaults on their loan obligations.