Chapter 11 would at least mean they could continue to operate while reorganizing. It certainly wouldn't be a good sign, but it wouldn't automatically mean that any specific activity (like coating film) crashed to a halt.

And as to what would come out the other end after a reorg, who knows? As people keep noting, their film division when looked at in isolation has been running a profit, so it seems like it could conceivably make sense to sell off or spin off in the course of bankruptcy proceedings. But I'm just speculating here---I know roughly as much about business organizations and finance as a turnip does.