Hi LEM;
As I´m not a "MCP licensed", I´ll give some information regarding the 737-200 (but you can derivate a bit).
For my kind of acft, in this case it won´t be correct to select MAX CONT thrust. It would be better to choose G/A thrust. Needless to say that I´m assuming that the failure occurred above 60Kt - otherwise, you would be supposed to select TO power.
G/A provides a little more thrust than Max Continuous. But remember that, after 5 min using this eng setting (it´s a limitation), you´ll need to ask for Max Cont thrust.
I hope you understood my point of view.
Regards,
PP