So this defensive strategy was planned from the beginning. The L in LLC stands for limited. It means Nintendo won't get any money. Tropic Haze LLC declares bankruptcy and tells Nintendo "our assets are two rolls of toilet paper and this empty can of coke, GL with getting your millions". Certainly cheaper than fighting a top lawyer team with unlimited funding
Yeah the LLC structure always seemed weird to people. After what happened to Bowser serving prison sentence and having his future earnings garnished for the rest of his life, this might have been the smart play. Yuzu group will never be able to pay the 2 mil. Company goes under and owners walk away from this escaping real harm.