Don’t they have to be making a profit.
Basically, when any company goes into bankruptcy, they’re allowed to continue operations while the proceedings are in motion. This means that if they go into bankruptcy, but suddenly business picks up, they can resolve the bankruptcy and pull out. However, if that fails, they would have to begin selling of “assets”, which can consist of factories, mines, patents, and other items of value that might allow them to continue. If a company sells off all assets and is still losing money, then they will finally collapse and the bankruptcy motion will be completed.
I hope that helped!
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