I don't think it's quite that simple. The bankruptcy court would require information on assets, liabilities, current income, expenditures, executory contracts, unexpired leases, and a statement of financial affairs from the subsidiary. The subsidiaries assets and liabilities are indeed combined with the parent, however subsidiaries do their own record keeping, in which case those documents would be required by the bankruptcy court irregardless of the parent company records. By doing what you described (falsifying) it would be borderline corporate fraud and embezzlement by the parent company. This whole scenario doesn't seem remotely feasible to me for a variety of reasons (including Inc.'s contract with Delta), but if you can offer up a legal explanation as to how Inc. could do this legally, then I'll change my tune. Also, if anybody finds fault in my reasoning, feel free to correct me as I am certainly no expert and am only trying to provide my view.