Sure it was. But that doesn't mean the league hasn't supported it's troubled members for the past 20 years.But they didn't file bankruptcy to fold and cease operations. It was a whole other can of worms
I mean, how many franchises have been hanging on by a thread, filed bankruptcy or required payments in order to survive, and none have folded? Off the top of my head, I'd say about half.
I have to side with Tadite here - the NHL won't let a franchise fold these days, unless there truly is no other option. Heck, New Orleans was pretty much destroyed by Hurricane Katrina and the NFL and NBA temporarily relocated teams until their homes were refurbished.