noun
loss-making corporation; company in the red
Refers to a corporation or legal entity that is operating at a loss, typically in a business or tax context.
その赤字法人は、今年度も多額の損失を計上した。
That loss-making corporation posted a large loss again this fiscal year.
黒字法人 is a corporation in the black (profitable), the opposite of 赤字法人.
Compound of 赤字 (deficit, red ink) and 法人 (corporation, legal entity).