Ok having been through this myself:
As Elite you can overdraw by 10k miles. The call centre is clueless and will not be able to help. If anything they will mess up your reservation. However your local ticket office can do this without any problems (in my case at BRU airport).
Refunds: You must cancel the award (you can do so via the call centre), pay the fee, and watch your account closely for the miles to re-appear. It took me several weeks of arguing with TK to get 45k miles back.