[bsder]

It has to do with the size of the cash flows.

An unprofitable business with $1 billion in cash flow is way more useful for financial engineering than a profitable business with $100 million in cash flow.

The point of shoving something like Guitar Center through Chapter 7 is that the financial engineering debt holders actually take a bath and consequently think twice about wading into this with another firm.

If these kinds of financial engineering games can just keep getting handed around, there is no incentive to stop as you can shuffle the chairs around and keep looting the cash.