Why would a law preventing the purchase of a struggling company through raising large amounts of debt which is immediately stuck on their books so that they th

Why would a law preventing the purchase of a struggling company through raising large amounts of debt which is immediately stuck on their books so that they those same investors can immediately sell everything of value for profit off the scraps leaving a dead shell of a company that has to fire all their employees a bad thing? If things are so bad just let the company go bankrupt and sell off their assets. If things are recoverable then PE isn’t going to help because they’re going to put on too much debt. It doesn’t make anything better. It doesn’t fix the companies that are too far gone. It doesn’t fix the companies that could still be saved. All it does is make the investors a bunch of money at the expense of everyone else.