Because it appears that many of the credit default swaps (CDS) were written so that this might be the case

It’s this appointment of a government administrator to oversee automakers’ large expenditures and asset sales that has raised the possibility of a bankruptcy event for credit-default swaps, said Banc of America Securities analyst Glen Taksler.
He noted that the International Swaps and Derivatives Association, the trade group that acts as a standard-setter for credit-derivatives trading, says one trigger for a bankruptcy credit event is the appointment of an administrator, trustee or similar official to oversee all or most of an entity’s assets.

Once again, we see how financial “innovation” has created phony money at the cost of the real economy.