I have a problem with this story. The Boeing 737 is perfectly capable of flight, even climb, with just one engine operating. This flight was on approach to the airport, a flight condition requiring little thrust from the engines. The nacelle of the 737 is lined with Kevlar, able to contain the shrapnel from a catastrophic rotor burst.
Earlier reports had multiple witnesses reporting the whole plane burst into flames, then broke into chunks in midair.