Bankruptcy is such a bad, bad, bad thing! How can anyone advocate it as a good thing?
I wouldn’t characterize it as ‘good’, but sometimes its the only option.
They should let in bankrupt and restructure
Going to the dentist is a bad thing: it is terribly painful, it's expensive, and it involves a stranger sticking their fingers in your mouth and drilling away on your teeth. Still, we go to a dentist because all of the alternates are worse. It is the same with bankruptcy: you file bankruptcy because all of the alternatives are worse. Typically, in a corporate bankruptcy, or in this case a municipality, a bankruptcy is filed to protect what assets and opportunities remain to the debtor. That protection is a good thing because it allows a judge to sort out who gets what in an orderly fashion, instead of these things being decided by a race to the courthouse.