> The company is worth $300 billion to the bondholders, and $0 to shareholders, giving a total value of $300 billion.

But if it was cash and debts instead of assets and debts, the company wouldn't be worth $300 billion to bondholders?

If you spend a dollar to buy a chocolate bar, you say the chocolate bar is worth $1 and that you spent $1.

If you give a teller $1 for 4 quarters, you don't say that you spent $1.

I borrow $10 from a friend.

I currently am worth $0 to that bondholder.

I spend one of those borrowed dollars on a chocolate bar.

Now I'm worth $1 to that bondholder??

The spending is done with a completely different person than the bondholder.

So you can create infinite value by borrowing more and more money.

I'd love to create lots of value for you by borrowing money from you. I would even consent to not destroy any of that value through making payments.

The bond is worth $300b to the bondholders, but only because it is expected to be paid back and is secured by the $300b assets. You can prove that by assuming those assets disappeared: how much is the bond (or the company) worth to the bondholders then?

Every single fair transaction has a net value of $0. If I buy a chocolate bar for $1 that's worth a dollar to me, I'm up one chocolate bar worth $1 and down a dollar. No net worth change, but it is validation the chocolate bar is worth $1.