You are buying the assets from the previous company but not its liabilities. So the previous company can file for bankruptcy without affecting the new company.

You are buying the assets from the previous company but not its liabilities. So the previous company can file for bankruptcy without affecting the new company. Also, since the new company is buying the assets, it improves the books in the old company and the extra funds will be used to pay off some of the debtors without the debtors being able to access the assets in the new company.