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§ 1113

In re AMR Corp.

Ruling
Existing collective bargaining agreement could be rejected in absence of negotiated collective bargaining agreement to allow debtor's reorganization.
Procedural posture

After employees of a bankruptcy debtor rejected a negotiated collective bargaining agreement (CBA), the debtor moved to reject the existing CBA pursuant to 11 U.S.C.S. § 1113 based on necessity to the debtor's reorganization. The employees' union objected to the motion.

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Commercial opinion summary, case decided on September 04, 2012 , LexisNexis #1012-060

In re AMR Corp.

Ruling
Debtor airline could not reject collective bargaining agreement with pilot's union due to proposed changes that were not deemed necessary.
Procedural posture

Chapter 11 debtor, an airline, filed a motion under 11 U.S.C.S. § 1113 seeking authority to reject the collective bargaining agreements (CBAs) between the airline and various unions. While the airline reached agreement with some unions, it did not reach an agreement with the pilots union (the union) and the court therefore addressed the merits of the motion as to that union.

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Commercial opinion summary, case decided on August 15, 2012 , LexisNexis #0912-025

In re Hostess Brands Inc.

Ruling
Debtor could not seek relief from collective bargaining agreement that had expired.
Procedural posture

Creditor, the union representing employees of the debtors, filed a motion to dismiss the motion of the debtor for relief from terms of its collective bargaining agreement pursuant to 11 U.S.C.S. § 1113, for lack of subject matter jurisdiction.

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Commercial opinion summary, case decided on June 22, 2012 , LexisNexis #0712-134

In re T.A. Brinkoetter & Sons Inc.

Ruling
Interest, but not penalties, on late payments under collective bargaining agreement was nondischargeable.
Procedural posture

When a chapter 11 debtor in possession (DIP) failed to timely pay postpetition fringe benefits under a collective bargaining agreement (CBA) that it did not reject under 11 U.S.C. § 1113, movants, the pension and welfare funds to which the payments were owed, asked the court to grant administrative expense status to those debts. The court treated the matter as a motion under Fed. R. Bankr. P. 9013 and 9014.

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Commercial opinion summary, case decided on March 28, 2012 , LexisNexis #0512-096

In re Stokes Excavating Inc.

Ruling
Reasonable attorneys' fees of pension fund allowed under debtor corporation's collective bargaining agreement with union, which was not rejected or modified.
Procedural posture

Debtor corporation filed a petition under chapter 11 and operated its business as a debtor-in-possession. A health, welfare, and pension fund filed a claim against the debtor's bankruptcy estate, seeking payment of dues and contributions the debtor was required to make under a collective bargaining agreement ("CBA"), and after the court ordered the debtor to make those payments, the fund sought an award of attorneys' fees.

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Commercial opinion summary, case decided on December 09, 2011 , LexisNexis #0212-095

In re Karykeion Inc.

Ruling
Debtor hospital could reject successor provision in collective bargaining agreement with service employees' and nurses' unions.
Procedural posture

In this chapter 11 case, the debtor hospital requested that the court approve its rejection of a successor provision in two collective bargaining agreements (CBAs) with service employee and nurses unions.

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Commercial opinion summary, case decided on April 01, 2010 , LexisNexis #0910-099

In re Brunos Supermarkets LLC

Ruling
Debtor could not reject collective bargaining agreement where it did not demonstrate that union lacked good cause when it refused to accept rejection proposal.
Procedural posture

Debtor corporation filed a petition under chapter 11 and a motion under 11 U.S.C.S. § 1113, seeking permission to reject collective bargaining agreements (CBAs) it concluded with a union. The union filed an objection to the debtor's motion.

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Commercial opinion summary, case decided on April 27, 2009 , LexisNexis #0709-126

In re Frontier Airlines Holdings Inc.

Ruling
Airline authorized to reject collective bargaining agreements.
Procedural posture

Debtor airline filed a motion under 11 U.S.C.S. § 1113 for authority to reject its collective bargaining agreements (CBAs) with three groups of its employees, all of whom were represented as their bargaining agent by the Teamsters Airline Division of the International Brotherhood of Teamsters (the union).

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Commercial opinion summary, case decided on November 14, 2008 , LexisNexis #0909-018

In re Liberty Fibers Corp.

Ruling
Debtor employer's prepetition obligations pursuant to collective bargaining agreement could not be designated as administrative expense in case converted from chapter 11 to chapter 7.
Procedural posture

Union for certain employees of a chapter 7 debtor, which had converted its case from chapter 11, filed motions to designate certain prepetition obligations of the debtor pursuant to a collective bargaining agreement as chapter 11 administrative expenses pursuant to 11 U.S.C. § 1113(f). The chapter 7 trustee objected to the motions.

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Commercial opinion summary, case decided on August 27, 2007 , LexisNexis #1007-069

In re Northwest Airlines Corp.

Ruling
Court denied relief from order rejecting collective bargaining agreement and granted debtor's motion to expunge proof of claims for rejection damages.
Procedural posture

In debtor's chapter 11 bankruptcy, a group of employees moved for relief from an order granting debtor's application pursuant to 11 U.S.C. § 1113 to reject its collective bargaining agreement ("CBA") with the group. In the second motion, debtor sought to expunge two proofs of claim filed by the same group, which claims sought damages against debtor arising by reason of the rejection of the CBA.

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opinion summary, case decided on April 13, 2007 , LexisNexis #0607-098