Severance is never guaranteed though, bankruptcy or otherwise. If a company is going bankrupt, of course they're not going to have the funds to pay severance when closing up shop. Unless I'm misunderstanding the point (and the quotations around generosity were intended to convey that in bankruptcy, that doesn't exist).

Regardless, I suppose the end result should be to make unemployment kick in faster so you don't need an insolvent company to provide a severance they don't have the funds to provide.