No, at least it wasn't how it worked at the company that I worked for which went bust. There was a holding company and a service company and other companies. Assets got transferred between companies, debts got transferred between companies. One company ended up with almost all the debt, the other companies ended up with most of the assets and that one was wound up. Its directors got shafted by the directors of the holding company who didn't reveal all the facts prior to the events. I can't now remember all the details, but it was quite dodgy.

It sort of has a happy ending as some of the shafted directors managed to shaft the dodgiest of the shafting directors, who ended up with an insolvant company in Jersey which he couldn't actually make insolvant without revealing his dodgy dealings; they managed to get out with their sense of revenge satisfied.