[nico]

There are two types of corporate bankruptcy, chapter 7 and 11. Chapter 7 is what you are probably thinking about. Chapter 11 allows for “rehabilitation”, ie. negotiating debt, discharging some, and setting up a plan to get out of bankruptcy

Most of the times when you see the news reporting about prominent/public US companies filing for bankruptcy, it’s chapter 11. Which is also the case here with 23andme

In chapter 7, there is no rehabilitation, the whole company is handed over to a trustee, who is in charge of selling the assets (or abandoning them), and paying back the stakeholders

[friendzis]

Yeah, rest of the world calls one bankruptcy and the other restructuring, adding to confusion.

[llm_nerd]

Both types are forms of bankruptcy in much of the world, exactly like the US. It usually isn't differentiated which because many companies that go down the restructuring route end up at the insolvency end when debtors aren't onboard with their plans.