If a private company goes bankrupt mid-project, what legal protections keep the public service running while the city finds a new partner?

When a private company runs a city project and goes broke, the city relies on a 'performance bond' to keep things moving. This is basically a special insurance policy where a third company promises to finish the work or pay the city back if the first company fails. Before the project starts, the city also uses a 'step-in right,' which is a clause in the contract that says t....