I think if they'd gone to the state governments in NRW and Brandenburg and been refused that would have been the end as creditors would have panicked.
If they have, as they suggest renegotiated leases etc., they have bought some time, but I reckon the smart money is on LH taking over some or all of AB at some stage, but if they do, the EU competition authorities really need to step in to force LH to sell of other assets, slots and the like to ensure a "German Aeroflot" isn't being created.