> This is probably the correct decision.

It is 100% not. It makes fewer creditors whole. Simple as that. It's worse for all creditors involved, as per the creditors. Any suggestion that this is "correct" or better is out of ignorance or deceit.

> The other creditors are far better off getting more cash

The nature of the original deal guaranteed the other creditors got more money than they would from the other offer by $100,000 more. Suggesting that they were getting less is ignorant.

> the onion gets to buy this website for no money.

Again, the Onion was spending real cash.

At best your are completely ignorant of the deal.