This is a pure WAG, but a cursory look at their financials (provided in the post) would indicate the latter (Chap 7), rather than the former.
Risk is being punished on Wall Street right now, and there is little patience or mercy being shown. Given their rate of burn and the amount of exposure shown on their Balance Sheet, I would imagine they are in an extremely vulnerable position right now.
Add that credit crunch to the picture, and it becomes somewhat hard to imagine that someone is going to ride to their rescue in the instance of a margin call.
