title: Preferences of Creditors Towards Formal Bankruptcy Or Restructuring In the Course of Bankruptcy (The Case of “Transaero” Company)
metadata.name: dc.contributor.author
metadata.value: Veremchuk, Inga A.
metadata.lang: -
metadata.name: dc.contributor.author
metadata.value: Chirkova, Elena V.
metadata.lang: -
metadata.name: dc.date.accessioned
metadata.value: 2017-08-20T16:21:14Z
metadata.lang: -
metadata.name: dc.date.available
metadata.value: 2017-08-20T16:21:14Z
metadata.lang: -
metadata.name: dc.date.issued
metadata.value: 2017-06
metadata.lang: -
metadata.name: dc.identifier.other
metadata.value: 10.21638/11701/spbu18.2017.205
metadata.lang: -
metadata.name: dc.identifier.uri
metadata.value: http://hdl.handle.net/11701/7068
metadata.lang: -
metadata.name: dc.description.abstract
metadata.value: This article is a case study of the bankruptcy of the Russian carrier company “Transaero” that
  took place in 2015 aimed to reveal the preferences of creditors of financially distressed companies
  between formal bankruptcy and restructuring. We suggest that the creditors of “Transaero”
  have chosen its bankruptcy because its liquidation value was significantly higher than its going
  concern value. Using data on plane sales we estimated statistically the market value of
  airplanes by plane type depending on their age. It gave us the better estimate of the value of
  Transaero’s fleet. According to our estimate the liquidation of the company will lead to the 75%
  debt recovery for its debt holders. Then we modelled the hypothetic restructuring that included
  asset sales and return of a number of planes in financial lease to the leasing companies, and in
  total we got rid of 35 planes. This restricting could bring the debt down by 22% but under no
  future cash flow scenario the company would be able to serve its debt. The enterprise value of
  “Transaero” as a going concern is less than its liquidation value hence the value of its equity
  is negative. The future cash flow to the firm is less than annuity payments needed to serve and
  to pay out debt. In case of restructuring the creditors’ losses would have been in the range of
  60% to 78%. Thus, we concluded that the choice of the creditors was rational.
metadata.lang: en_GB
metadata.name: dc.language.iso
metadata.value: ru
metadata.lang: en_GB
metadata.name: dc.publisher
metadata.value: St Petersburg State University
metadata.lang: en_GB
metadata.name: dc.relation.ispartofseries
metadata.value: Russian Management Journal;Volume 15; Issue 2
metadata.lang: -
metadata.name: dc.subject
metadata.value: bankruptcy
metadata.lang: en_GB
metadata.name: dc.subject
metadata.value: restructuring
metadata.lang: en_GB
metadata.name: dc.subject
metadata.value: market value
metadata.lang: en_GB
metadata.name: dc.subject
metadata.value: liquidation value
metadata.lang: en_GB
metadata.name: dc.subject
metadata.value: asset sales
metadata.lang: en_GB
metadata.name: dc.subject
metadata.value: preferences of creditors
metadata.lang: en_GB
metadata.name: dc.title
metadata.value: Preferences of Creditors Towards Formal Bankruptcy Or Restructuring In the Course of Bankruptcy (The Case of “Transaero” Company)
metadata.lang: en_GB
metadata.name: dc.type
metadata.value: Article
metadata.lang: en_GB
resources.filename: 05-Veremchuk.pdf
resources.url: https://dspace.spbu.ru/bitstream/11701/7068/1/05-Veremchuk.pdf
resources.format: Adobe PDF
resources.size: 237,2 kB