Except they can make the argument that fire selling the equipment could put other businesses the creditors have debt with in jeopardy so it'd be better to just burn it all.
That's not how corperate liquidation works. When a company is destroyed by a popped bubble, the bankruptcy court appoints a trustee to liquidate everything and then pay as much of the debts as possible. Bankruptcy shields the company's executives from liability, but intentionally and spitefully destroying assets that should go to paying debts would not be a terribly smart move.
Except they can make the argument that fire selling the equipment could put other businesses the creditors have debt with in jeopardy so it'd be better to just burn it all.
That's not how corperate liquidation works. When a company is destroyed by a popped bubble, the bankruptcy court appoints a trustee to liquidate everything and then pay as much of the debts as possible. Bankruptcy shields the company's executives from liability, but intentionally and spitefully destroying assets that should go to paying debts would not be a terribly smart move.