Let's say a company sells car loans (or mortgages or credit cards, I don't think it really matters). The company sells the loans to an SPV, who then issues securities backed by the cash flows the SPV receives from the loan repayments, which, as far as I understand, come through the initial company (as it is the entity that services the car loans and repossesses them in the event that a car purchaser cannot make payments).
If the company goes bankrupt, and must discontinue operations, I understand that the SPV is legally separate, and as such the company's creditors have no claim on the assets held by the SPV.
But how is the SPV going to collect/ repossess the car loans/ cars? It's not set up to do that. Would the SPV not also end up defaulting on its obligations at this point?