[P]
[BLOCKQUOTE][BR]----------------[BR]On 12/21/2002 9:49:34 PM flyonthewall wrote:
[P]Under Bankruptcy law, a company has to give 14 to 21 days notice for a hearing and the judge has up to 30 days after that hearing to decide whether to abrogate the labor contracts. US Airways deadline is January 16, 2003, because that is the day that the judge rules on the POR. [BR][BR]This is why if any labor union doesn't pass the concession ratification, liquidation will most likely be the next step in January. To the NO voters, I hope that you enjoy your last month at work![/P]----------------[/BLOCKQUOTE]
[P][/P]Wrong fly,that only applies to an intial request and here is the language from the section 1113, it was set up because of Lorenzo and CO's BK in 1982:[BR][BR]
[P class=MsoNormal style="MARGIN: 0in 0in 0pt"][SPAN lang=EN style="mso-ansi-language: EN"][FONT size=3][FONT color=#000000]also went over all the procedures and steps in the bankruptcy codes.[SPAN style="mso-spacerun: yes"] [/SPAN]One item covered in depth is the 1113 letter, which refers to the section of code that ensures that a company negotiates with the union before they seek abrogation of the labor agreement.[SPAN style="mso-spacerun: yes"] [/SPAN]When a company seeks protection, the agreement remains in effect.[SPAN style="mso-spacerun: yes"] [/SPAN]When a union negotiates an 1113 letter it secures an agreement with the company showing that the company will not seek further cuts from labor.[SPAN style="mso-spacerun: yes"] [/SPAN]To this date, no company that has had an 1113 letter negotiated has ever asked the court to abrogate it.[?xml:namespace prefix = o ns = "urn:schemas-microsoft-com
ffice
ffice" /][o
][/o
][/FONT][/FONT][/SPAN][/P]
[P class=MsoNormal style="MARGIN: 0in 0in 0pt"][SPAN lang=EN style="mso-ansi-language: EN"][FONT size=3][FONT color=#000000] [o
][/o
][/FONT][/FONT][/SPAN][/P]
[P class=MsoNormal style="MARGIN: 0in 0in 0pt"][SPAN lang=EN style="mso-ansi-language: EN"][FONT size=3][FONT color=#000000]Companies that request abrogation of the labor agreement but it must meet the following nine (9) distinct requirements:[o
][/o
][/FONT][/FONT][/SPAN][/P]
[P class=MsoNormal style="MARGIN: 0in 0in 0pt"][SPAN lang=EN style="mso-ansi-language: EN"][FONT size=3][FONT color=#000000] [o
][/o
][/FONT][/FONT][/SPAN][/P]
[P class=MsoNormal style="MARGIN: 0in 0in 0pt 1in; TEXT-INDENT: -0.25in; mso-list: l0 level1 lfo1; tab-stops: list 1.0in"][FONT color=#000000][SPAN lang=EN style="mso-ansi-language: EN"][FONT size=3]1.[/FONT][SPAN style="FONT: 7pt 'Times New Roman'"] [/SPAN][/SPAN][SPAN lang=EN style="mso-ansi-language: EN"][FONT size=3]The debtor in possession must have made a proposal to the union.[o
][/o
][/FONT][/SPAN][/FONT][/P]
[P class=MsoNormal style="MARGIN: 0in 0in 0pt 1in; TEXT-INDENT: -0.25in; mso-list: l0 level1 lfo1; tab-stops: list 1.0in"][FONT color=#000000][SPAN lang=EN style="mso-ansi-language: EN"][FONT size=3]2.[/FONT][SPAN style="FONT: 7pt 'Times New Roman'"] [/SPAN][/SPAN][SPAN lang=EN style="mso-ansi-language: EN"][FONT size=3]The proposal must be based upon the most complete and reliable information available at the time of the proposal.[o
][/o
][/FONT][/SPAN][/FONT][/P]
[P class=MsoNormal style="MARGIN: 0in 0in 0pt 1in; TEXT-INDENT: -0.25in; mso-list: l0 level1 lfo1; tab-stops: list 1.0in"][FONT color=#000000][SPAN lang=EN style="mso-ansi-language: EN"][FONT size=3]3.[/FONT][SPAN style="FONT: 7pt 'Times New Roman'"] [/SPAN][/SPAN][SPAN lang=EN style="mso-ansi-language: EN"][FONT size=3]The modification must be necessary to permit reorganization.[o
][/o
][/FONT][/SPAN][/FONT][/P]
[P class=MsoNormal style="MARGIN: 0in 0in 0pt 1in; TEXT-INDENT: -0.25in; mso-list: l0 level1 lfo1; tab-stops: list 1.0in"][FONT color=#000000][SPAN lang=EN style="mso-ansi-language: EN"][FONT size=3]4.[/FONT][SPAN style="FONT: 7pt 'Times New Roman'"] [/SPAN][/SPAN][SPAN lang=EN style="mso-ansi-language: EN"][FONT size=3]The modification must provide that all affected parties be treated fairly and equitably.[o
][/o
][/FONT][/SPAN][/FONT][/P]
[P class=MsoNormal style="MARGIN: 0in 0in 0pt 1in; TEXT-INDENT: -0.25in; mso-list: l0 level1 lfo1; tab-stops: list 1.0in"][FONT color=#000000][SPAN lang=EN style="mso-ansi-language: EN"][FONT size=3]5.[/FONT][SPAN style="FONT: 7pt 'Times New Roman'"] [/SPAN][/SPAN][SPAN lang=EN style="mso-ansi-language: EN"][FONT size=3]The debtor must provide the union with such relevant information as is necessary to evaluate the proposal.[o
][/o
][/FONT][/SPAN][/FONT][/P]
[P class=MsoNormal style="MARGIN: 0in 0in 0pt 1in; TEXT-INDENT: -0.25in; mso-list: l0 level1 lfo1; tab-stops: list 1.0in"][FONT color=#000000][SPAN lang=EN style="mso-ansi-language: EN"][FONT size=3]6.[/FONT][SPAN style="FONT: 7pt 'Times New Roman'"] [/SPAN][/SPAN][SPAN lang=EN style="mso-ansi-language: EN"][FONT size=3]The debtor must have met with the collective bargaining representative at the reasonable times subsequent to making the proposal.[o
][/o
][/FONT][/SPAN][/FONT][/P]
[P class=MsoNormal style="MARGIN: 0in 0in 0pt 1in; TEXT-INDENT: -0.25in; mso-list: l0 level1 lfo1; tab-stops: list 1.0in"][FONT color=#000000][SPAN lang=EN style="mso-ansi-language: EN"][FONT size=3]7.[/FONT][SPAN style="FONT: 7pt 'Times New Roman'"] [/SPAN][/SPAN][SPAN lang=EN style="mso-ansi-language: EN"][FONT size=3]The debtor must have negotiated with the union concerning the proposal in good faith.[o
][/o
][/FONT][/SPAN][/FONT][/P]
[P class=MsoNormal style="MARGIN: 0in 0in 0pt 1in; TEXT-INDENT: -0.25in; mso-list: l0 level1 lfo1; tab-stops: list 1.0in"][FONT color=#000000][SPAN lang=EN style="mso-ansi-language: EN"][FONT size=3]8.[/FONT][SPAN style="FONT: 7pt 'Times New Roman'"] [/SPAN][/SPAN][SPAN lang=EN style="mso-ansi-language: EN"][FONT size=3]The union must have refused to accept the proposal with good cause.[o
][/o
][/FONT][/SPAN][/FONT][/P]
[P class=MsoNormal style="MARGIN: 0in 0in 0pt 1in; TEXT-INDENT: -0.25in; mso-list: l0 level1 lfo1; tab-stops: list 1.0in"][FONT color=#000000][SPAN lang=EN style="mso-ansi-language: EN"][FONT size=3]9.[/FONT][SPAN style="FONT: 7pt 'Times New Roman'"] [/SPAN][/SPAN][SPAN lang=EN style="mso-ansi-language: EN"][FONT size=3]The balance of the equities must clearly favor rejection of the agreement.[o
][/o
][/FONT][/SPAN][/FONT][/P]