This is not a new result, it is just the first time that a Court of Appeals had to actually say it out loud. Also, the point of bankruptcy is to yield the most

This is not a new result, it is just the first time that a Court of Appeals had to actually say it out loud. Also, the point of bankruptcy is to yield the most possible value for the creditors, it is an integral component of the balancing test for confirmation of proposed settlement for resolution of the proceedings. I'm not a fan of the outcome or the process, but this is just a case of the law working as intended.