Business reorganization has become synonymous with business sell off. This is for a number of reasons, but the number one cause of this outcome is the failure of management to start the reorganization process in time.
The Bankruptcy Code, and in particular Chapter 11, is still a useful system for restructuring debt, selling off unproductive assets, rejecting ill fated contracts, and shedding burdensome obligations. As long as the creditors of the company being reorganized accept the plan, there is no reason why people who built solid businesses cannot rehabilitate those businesses in Chapter 11.
But, if the plan has to be “crammed down” on un accepting creditors then the plan will have to pay creditors in full through restructured obligations. The key to making this process work is to start early, propose a plan at filing, and stop avoiding the reality of your situation.