Evaluation of the Market Value of Claim Rights for Russian Companies Which are Exposed to Bankruptcy

Abstract

This research sheds light on the significance of claim rights for Russian companies, particularly during times of financial crises and bankruptcy. The relevance of this research the emergence of numerous challenges during times of crises is a notable phenomenon the value of money that the debtors can ensure and apply the process of moratorium in case of bankruptcy. The procedures of bankruptcy in Russian markets in addition to the types of overdue dets in companies will be summarized in this research, the time periods which are needed to sell the equity of debtors and repay back the values of claims for creditors also will be explained in this study. Besides, the weighted average interest rates on ruble and discount factor will be calculated and the cash flows will be discounted according to the time periods and discount factor. The purpose of this study is to find a mechanism for assessing value at risk to assist companies in bankruptcy proceedings. The data was collected from Russian companies facing bankruptcy from 2016 to 2022. The results show that debtors at risk of insolvency will generate lower cash inflows than other debtors, which will reduce the funds recovered from creditors and affect the bankruptcy process.