> Which obviously doesn't make sense in a bankruptcy, since the whole point is the creditors are not going to get paid back 100%

The creditors already own the asset. The estate is selling, not Alex Jones.

If you asked every creditor which bid they preferred, which do you think they'd choose? The creditors forgoing their claims obviously prefer one. As for the rest, they'll choose the one that pays them more: The Onion's bid.

This isn't how bankruptcy works in practice, but it's a good shorthand for what the correct answer should be.