I would imagine it would rather be a chapter 11 kind of route, restructuring the company but the assets producing electricity are not going anywhere.
Customers are automatically moved to a Provider Of Last Resort (POLR). No interruption in service, but (likely) dramatically higher prices.
Brazos is a co-op, and is not part of the competetive retail market operated by ERCOT. They own their own generation and distribution, but are part of the grid for reliability purposes.
I'm not aware of any mechanism that could force their customers (who are also the owners) into that market.
The state could nationalize the company, and provide electricity as a govenment-run utility?