The impact of financial crises on the market value of the claim rights during moratorium on bankruptcy in Russian market

Abstract

This research studies the impact of the financial crisis and the moratorium on bankruptcy on the final value of the bank's claim rights. The relevance comes from the fact that a lot of problems appear in the time of crises to apply the process of moratorium in case of bankruptcy. The aim of this research will be finding a mechanism to evaluate the value of claims to help the company in the process of bankruptcy. The methodology that will be used in this research depends on the cash flow that will be generated from the debtors to evaluate the amount of money that they can obtain to complete the process of bankruptcy. The data will be collected from the Russian companies which are exposed to bankruptcy from 2013 to 2022. The results showed that the cash inflows generated from the debtors who are exposed to bankruptcy will be lower than other debtors and that will effect on the process of bankruptcy. To understand the calculation model, the income method of business valuation used in determining the market value of claims is described. The rules regulated the terms and costs of the bankruptcy procedure, calculated in the model, are described.

Keywords

• Market value of claims
• income method of business valuation
• moratorium on bankruptcy
• debt settlement period
• discount rate