[mywittyname]

Anymore, corporate "death" means that stock & bond holders lose their wealth. Depending on the type of bankruptcy, the assets get purchased for pennies on the dollar by a large firm, or the existing debt is restructured.

So yeah, a "stronger" company will emerge from the ashes. But only because other people took a bath.

It's like if the bank forecloses on your house. You owe $200k, but they sell it at auction for $50k. The above argument is like saying the new owners who bought your house will be a much stronger financial situation. This is true, but it ignores the fact that majority of involved parties are worse off (you & the bank).

[tracker1]

And that bath isn't necessarily a bad thing... poorly managed companies should be allowed to fail... and investors should hold more responsibility in holding management accountable for their actions without always handing out golden parachutes so to speak.