Read about federal bankruptcy protection, aka Chapter 11 [1]. Total liquidation would be Chapter 7. Applying for this kind protection allows a company to conti

Read about federal bankruptcy protection, aka Chapter 11 [1]. Total liquidation would be Chapter 7. Applying for this kind protection allows a company to continue doing business while halting creditor claims. However, they have to undergo a formal process where they have to construct a restructuring plan to be reviewed and approved by the courts. The UK this process is apparently called administration [2], and there are several mechanisms for restructuring and dealing with creditors. [1] https://en.wikipedia.org/wiki/Chapter_11,_Title_11,_United_States_Code https://en.wikipedia.org/wiki/Chapter_11,_Title_11,_United_S... [2] https://en.wikipedia.org/wiki/Administration_in_United_Kingdom_law https://en.wikipedia.org/wiki/Administration_in_United_Kingd...