When/if they file BK, the BK judge will be assigned and a creditors committee will be formed. Then if the company mgmt can form a viable plan considering labor/equip/facilities going forward, they will make a plan to submit to the committee/judge which may include things like forced labor contract changes, lease changes, etc. The committee can also consider other offers by 3rd parties to buy assets and/or just proceed with liquidation. It's up to the committee and judge which path is most viable and labor/smaller creditors are mostly along for the ride. Of course politics/money/influence all have huge stakes in the process.

It's not good for anyone, especially labor and if nothing else, is actually very expensive because the many lawyers involved get PAID BANK!