Not false at all. The Judge DID make that statement in reference to the Company ENTERING bankruptcy. Because, if they didn't, the secured creditors would have seized the assets and screwed everybody by shutting down the plant and going bye-bye right away. That is why it was in the best interest of all stakeholders to go into bankruptcy as it provided for an orderly process get the highest recovery and give a chance to provide for all stakeholders if possible.
In the end, it wasn't possible, but at least they tried.
That is how bankruptcy works.
You need to read the court documents again.
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