Sensitive Analyze as a Tool for Decision Making within Reorganization of Insolvent Compan

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 how to deal with this situation and repay creditors money. Each of the options has been specified as a variant of a decision-making tree. This paper is focused on finding the upper limit for worth of reorganization through the eyes of creditors. The heuristic based on partially unknown probabilities on chance nodes replaced by intervals of probabilities variants. The result is then focused on the comparison and evaluation of the possible best variant for creditors to keep promoting reorganization as the solution for indebted company. A realistic case study is presented in full details. Further introduction of decision making with uncertainties in insolvency proceedings.