START-ALLIANCE LLC. PROVIDES DEBTS VALUATION SERVICES IN MOSCOW AND OTHER RUSSIAN REGIONS.

In Russia, the right to request a debt from a debtor can be sold under cession agreement. Very often, parties of that kind of transactions require an independent valuation to be done prior to final signing of the cession agreement.

The value of a debt obligation of a legal entity is mostly determined by debtor’s financial conditions and his ability and willingness to repay the debt. The risk of non-payment is always there, so in each case the valuer must accurately estimate the amount of discount, corresponding to the existing risk.

Our experience shows that the need for debt valuation most often arise when analyzing the company’s financial performance, assigning claims or settling the mutual claims between companies.

DOCUMENTS AND INFORMATION REQUIRED FOR DEBT VALUATION:

• The agreement(s) under which the debt was incurred as a result of debtor’s non-performance or undue performance.
• All addendums and other supplemental documentation to the said agreement(s) – if any.
• Relevant payment documents – if any.
• Documents showing movement of goods (waybills, deeds of conveyance etc.) – if any.
• Correspondence with the contracting party pertaining to settlement of mutual claims – if any.
• Court decisions – if any.

Our work will result in a debt valuation report stating the fair market value of the claim as of the date of valuation. Under the current Russian legislation, the valuation report on an independent valuer may be used in court and other official institutions as an evidence of the value of the subject debt.