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("CBA"). The court must make specific findings in order to modify the CBA.
Section 1113(e) authorizes the court to grant interim relief. The interplay of these provisions lead a Colorado bankruptcy court to find that the effective date of rejection of a CBA was the date of the court's order. In contrast, rejection of an executory contract that has not been assumed is a breach as of immediately before the bankruptcy petition under § 365(g). The orchestra players who were not paid as required under the CBA were entitled to an expense of administration from the petition date through the date of rejection.
8.6 Pension Plans.
Whether or not a single employer pension plan is an executory contract, it may only be terminated in accordance with federal labor law. In the bankruptcy context, a distress termination is possible only if the bankruptcy court "determines that without termination the entities will be unable to pay all their debts pursuant to a plan of reorganization and will be unable to continue in business outside the chapter 11 reorganization process and approves the termination."
8.7 Retiree Benefits.
A debtor's freedom to reject an executory contract may be limited by Code § 1114 applicable to retiree benefits, as one debtor discovered when it sought to avoid paying benefits to discharged employees. The bankruptcy and district courts agreed that the employees were protected by agreements qualifying for protection under § 1114. The debtor could not avoid the employees obtaining retirement benefits by preventing their retirement by termination of employment.
