Reconciliation as a tool for decision making within decision tree related to insolvency problems

Abstract

The paper draws on the results of previous studies recoverability of creditor’s claims, where it was research from debtor’s point of view and his/her debts on the Czech Republic financial market. The company, which fell into a bankruptcy hearing, has several legislatively supported options by Insolvency act how to deal with this situation and repay creditors claim. Each of the options has been specified as a variant of a decision-making tree. This paper is focused on last option of evaluation (the first was solving evaluation with already known probabilities, and the second with co called water probability with ignorance of previous statistical findings) – The reconciliation. The reconciliation is the concept of the total ignorance represented by metaheuristics helps to incorporate a set of isolated specific information items within a general framework of metaheuristics which generates all missing information items. The result is then focused on the comparison and evaluation of the best ways to repay the debt, also including solution for the future continuation of the company currently in liquidation and quantification of percentage refund of creditors claim. A realistic case study is presented in full details.