Presumably the government will backstop it by a certain amount X, to be increased to Y > X if such funds can be clawed back from the principals / company.

Not equivalent to the most attractive exit they hope to make (if they stayed with the company and if it paid out), of course -- but enough to make it worth their trouble, to hedge the diminished employment prospects that will be incurred as a price for sticking their neck out, and to convince these companies that they're running a significant risk in pulling shenanigans like this.