Corporate bankruptcy happens for a lot of reasons other than being "broke". Chapter 11 is a court-supervised way of restructuring your debt. This has a lot of utility in many situations other than not being able to pay.
Meta may have lots of assets, but the LLC may not. The ability to have one wholly owned LLC go bankrupt by itself is one of the main reasons shell corporations exist.
Yeah but when you come to bankruptcy court with significantly more assets than debt, they aren't going to let you sell the business for pennies.
I'm asking how you would believe this vehicle would go broke, which is the usual reason to go to bankruptcy.
Corporate bankruptcy happens for a lot of reasons other than being "broke". Chapter 11 is a court-supervised way of restructuring your debt. This has a lot of utility in many situations other than not being able to pay.
It'll go before a judge and creditors would be able to object, so if it's just a ploy to get rid of debt you can be certain it'd be contested.
Meta may have lots of assets, but the LLC may not. The ability to have one wholly owned LLC go bankrupt by itself is one of the main reasons shell corporations exist.