Debt Rating and Debt Audit

As a rule the rating of each debt is the first step to be made before the recovery process is started, irrespective of whether before or outside the court. We consider more than two dozens traits of the debt on the basis of which we prepare the rating using statistical methods. The result of the rating, expressed in per cent values, expresses the recoverability rate of the debt, i.e. its real worth, and always stays within the range between the tax shield and its nominal value, minus the costs relating to the collection and the time value of the money.

If your company bears the burden of a large volume of receivables and you need to know clearly the recoverability of this item of your balance sheet, we shall perform a debt audit to assess and classify your receivables and give you a complete overview thereof. If the records in respect of the balance of your receivables do not comply with the actual values, we can include identification of individual receivables within our audit exercise.

"»SOB considers the project proposed by you as a good basis for the future negotiation," the member of the Board of the bank Petr Knapp replied to Zemek on 2nd March last year. "But the evaluation of debts must be carried out and a verification of the existence of resources that are to be used for payments suggested by you."

Source: Respekt, 4th February 2002, Expensive fouls of the metallurgist Zemek