GUEST, Many of us here have been in similar situations. Nothing is right; everything is wrong. And then someone walks in threatening to take your child away.
Your friend has taken the initiative on legal help and family counseling. She is open with you about her feelings and even that she is drinking sometimes to cope.
Listen. You have been good at this so far. If she is in counseling with her children, her depression will become evident and she will be steered towards therapy. Maybe the group counseling will be all she needs.
Meantime, a friend who is willing to listen is worth her weight in gold. Sometimes, just being able to say things out loud gives you a different perspective. She can't see the forest for the trees. Keep pointing out the trees and a few roses along the way.