A company that has too much debt but is otherwise viable can go through the bankruptcy. Ownership is transferred to the debt holders and equity holders are wipe

A company that has too much debt but is otherwise viable can go through the bankruptcy. Ownership is transferred to the debt holders and equity holders are wiped out. Companies that aren’t viable will have their assets sold off to other companies that can make better use of them. Dozens of airlines have come and gone over the last 50+ years but the planes didn’t just crumble to dust. Protecting companies that aren’t financially viable from bankruptcy doesn’t avoid losses but just increases the misery. The only benefit is spreading it out over a longer period of time and to different groups.