Why not force them into Chapter 11 and work safeguards that are already in place?
No … by the common law at the time of the Founding. Companies are chartered. The sovereign may not arbitrarily ignore that charter.
No … because companies are chartered state by state, not by the federal government.
No … by the Constitution, such power is not one granted the federal legislature, nor is it a reasonable extension of the few limited powers granted Congress.
No … by the Bill of Rights immediately appended to the Constitution at ratification. "The right of the people to be secure in their persons, houses, papers, and effects, against unreasonable searches and seizures". Such power would be an unreasonable seizure.
