You mean "to its unsecured creditors," not to its debtors. And actually, during bankruptcy, the company's assets are conveyed to a trustee, not directly to the creditors; the trustee pays the creditors the proceeds of the sale of the assets. And you're mistaken about when bankruptcy happens; a company can have a negative book value (assets minus liabilities) indefinitely as long as none of its creditors goes unpaid and files a (successful) bankruptcy petition against it as a result. It is less common, but certainly not unheard of, for bankruptcy petitions to be filed against companies with positive book values. (The company might be badly mismanaged, or it might have a lot of its book value tied up in illiquid assets it can't find a buyer for.)
Given this litany of errors, you ought not be offering the rest of us "lessons from Econom[ics] 101" and posting sentences in all capital letters.
Now then, I believe that in Texas law, and in the common law in general, you cannot abandon title to land. However, that is not the case for many other assets; if a company abandons some chattel property, before or after entering bankruptcy, the bankruptcy trustee does not gain the right to sell that property.
Also, under civil law, which is in effect over much of the world (although not in Texas), title to land can indeed be abandoned.
Given this litany of errors, you ought not be offering the rest of us "lessons from Econom[ics] 101" and posting sentences in all capital letters.
Now then, I believe that in Texas law, and in the common law in general, you cannot abandon title to land. However, that is not the case for many other assets; if a company abandons some chattel property, before or after entering bankruptcy, the bankruptcy trustee does not gain the right to sell that property.
Also, under civil law, which is in effect over much of the world (although not in Texas), title to land can indeed be abandoned.
http://papers.ssrn.com/sol3/papers.cfm?abstract_id=1348211