The key here is the bankruptcy issue. The bankruptcy court can appoint a trustee to protect the interests of the creditors. If wages are owed, they typically take precedence. The court, or the trustee, controls a company in bankruptcy. They may or may not allow the current management to run the company. Once the court allows the company to exit bankruptcy, the control then rests with the surviving owners/investors, which may be the previous, former creditors or subsequent buyers. Not sure if the former owners/investors (I'm assuming Ed Ellis had a good proportion of control), court or an appointed trustee made the decision.

Not a lawyer, but have worked for a couple of railroads in bankruptcy.