Bankruptcy doesn't make any sense unless there is a specific strategic debt to be eliminated. These were strategic reasons. There have been situations where giving the company to the major creditor resulted in a much better solution for all concerned than bankruptcy. There are many companies that are worth more in liquidation than they are as a going concern. In thinking about selling, every business owner should evaluate the liquidation alternative versus going concern value.
Liquidation value places a floor under the value of the business.