The foundation of a resolution of a bankrupt firm through Chapter 11 is the belief that some distressed firms can provide the most value to creditors if the firm is terminated and assets are sold piecemeal. shareholders are deserving of some compensation in bankruptcies even if that means imposing losses on creditors. some distressed firms can provide the most value to creditors if the form continues operation as a unit. the appropriate objective of bankruptcy law is to protect employees at the expense of creditors