I am not yet a believer that Blackstone's cash infusion is necessary, and I don't like the deal they are getting. Nonetheless, the merger is not the PRICE of Blackstone putting money in (just one of their conditions). The price of Blackstone's money is 18% and dilution.
Just because both entities are essentially bankrupt (and PZN is in default, not BK), doesn't mean that the same insolvency would exist if they merged. PZN has basically a single tenant that is insolvent because of the rent it is paying to PZN. If they merge, all that goes away. And of course when they merge, there would be no more dividend payments as there would be no more REIT.
How much cash they need after merging is anybody's guess. According to the proxy, they will need at least 100MM for taxes.