The liquidation is the company being stripped of assets, who then gets sold of to highest bidder in order to pay the creditors, some of those assets might very well be fully operational business units that someone else(a competitor or the government) want to buy whole.

I known that the us chapter 11 is kind of a bad way to do bankruptcy as it don't really wipe out the whole but allows the previous executives way to much of a stake in the process where as other countries replaces the leadership with a bunch of court/creditor appointed outsiders on day one.