BK puts DL in a highly vulnerable position. The creditor's committee (of which PTSC is a member) can exert a tremendous amount of pressure, and have a highly significant say in the proceedings. The assets of the debtor can be sold off if it can be demonstrated that the stakeholders, especially creditors, will be less harmed. A Ch11 case can be transferred to Ch7 status, depending on the circumstances involved. Much depends on the Plan of Reorganization that is presented by the debtor, and the subsequent scrutiny and examination said Plan will get from the creditor's committee and their attorney, and the judge. If PTSC truly wanted to wrest control or ownership of the MMP from TPL, this is undoubtedly the most opportune moment. Whether it makes sense or not is another discussion (but I sort of think it does). Demonstrating to the court that the stakeholders will do better by having TPL's interest in the MMP sold, or majority control granted to PTSC, is a possibility, whether the case remains Ch11 or not. Obviously TPL obtained D-I-P financing to get them through some window of time, but unless they can cash flow themselves inside Ch11, they will go bust at some point. And unless they can prove a cash-flow-positive entity will emerge from Ch11, they will not get that opportunity. As for their operations while in Ch11, generally speaking they must provide the court (trustee) with a detailed monthly report of operations listing all cash inflows and outflows. They also must pay court trustee fees, their own attorney fees, and the fees for the attorneys of the creditors, plus any financial advisors etc... On top of that, the TPL shareholders themselves will have yet another set of attorneys for which they will have to pay personally. Not a cheap endeavor, and often times the entity does not survive, and if it does it is quite often under different ownership when it emerges. There are massive amounts of negotiation that go on within a bankruptcy, and there is no where to hide from the scrutiny of the court, and the creditors, and the creditor's advisors.