[genericresponse]

Companies that file for bankruptcy don't have much damage done to operations and the organizational structure because its ability to keep operating is usually the highest value outcome. That is- the company's continued operations bring in more money than selling off the assets. Most corporate bankruptcy is about not making enough money to pay their outstanding debts, not having money losing operations. Typically the owners lose all their investment and the debtors lose some of their investment. The debtors, in order of priority, are given ownership of the company by the court.

The ability for ownership to exist separately from the "operating" company, for the owners to only be liable up to losing their investment, not more, and for the management and employees not to directly lose money is sorta the "why" for corporations to exist.

[JumpCrisscross]

> is sorta the "why" for corporations to exist

It’s why bankruptcy, specifically, restructuring exists.

Lots of countries don’t have restructuring codes. When their corporations go bankrupt, the assets automatically go to the creditors and/or are liquidated.