> How does a government funded org ever face bankruptcy, unless the government wants it to for political reasons?
It depends on the bankruptcy laws, and its possible that a "government funded" org still would be covered by them.
OTOH, in this particular case, its probably the common confusion of "bankruptcy" with "insolvency" playing a major role. Insolvency is usually the reason an entity enters (voluntarily or not) bankruptcy, but the two states are not equivalent.
It depends on the bankruptcy laws, and its possible that a "government funded" org still would be covered by them.
OTOH, in this particular case, its probably the common confusion of "bankruptcy" with "insolvency" playing a major role. Insolvency is usually the reason an entity enters (voluntarily or not) bankruptcy, but the two states are not equivalent.