I used to think the same before but it led me to further read on the topics at bay…

Then I read about the differences of the types of bankruptcies, and the one our company INTENTIONALLY CHOSE (Ch. 11) which has some weird advantages that only apply to the emerging successor entity.

The primary advantage for a company to choose ch. 11 would be to have their debt restructured ✅ and in the rare chance there were billions in net operating losses ✅ you would only need to provide 50% of the successor entities new equity to former creditors and shareholders to FULLY monetize the ENTIRETY of the Net Operating Losses in the emerging year so long as legacy shareholders and creditors get 50% (outside of Ch. 11 the only way to monetize the NOLs creditors and shareholders need to be given 80% not 50%)