”Where did the reserve go to”, in business of all kinds there is very little reserve, it’s just not airlines, when customers stop paying you, you can’t pay the overheads. Your creditors, including leasing companies, banks and shareholders have to take a hit. It’s up to the creditors to decide if the business can be revived or wether to throw the towel in. New investors may or may not buy up the assets such as they are, one guarantee, employees and small creditors always loose.