OPCO is in default, so PZN clearly has no legal obligation to honor its contracts with OPCO. The only issue is whether the states that have contracts with OPCO must honor them. I doubt the states would have to do so. If OPCO goes into Chapter 11, PZN can buy out OPCO's contracts with the states at market value. If anyone else steps in to buy them that would be fine for PZN. Let someone else be the intermediary.
The point is that PZN owns the prisons. The states have to deal with PZN unless they have an alternative facility ready to go, which is highly unlikely in most cases. OPCO in Chapter 11 would have no power.