A critical issue confronted by employers in economic distress whose liabilities include current or past contractual obligations to unionized employees is whether they can obtain significant concessions from their unions. The relevant considerations in this analysis often extend to whether, through a bankruptcy filing or other financial restructuring, the employer can: (i) modify or reject a collective bargaining agreement; or (ii) reduce or eliminate vested retirement benefits. Similarly, private equity or other potential investors in such a business, or entities exploring such an acquisition in or prior to a bankruptcy, factor into their business analysis whether the acquiring entity can avoid successor labor liabilities and negotiate favorable employment terms with the prior employer’s unions.
Please join Joshua L. Ditelberg, Stuart Newman and Howard Pianko of Seyfarth Shaw LLP for a discussion of labor strategies and obligations in bankruptcy and business restructuring in today’s economic environment.
Topics to be covered include:
- Concessionary bargaining to avoid bankruptcy
- The requirements to modify or reject a collective bargaining agreement under Section 1113 of the Bankruptcy Code
- The requirements to reduce or eliminate vested retirement benefits under Section 1114 of the Bankruptcy Code
- Understanding and avoiding successor labor liabilities as a purchaser (e.g., through Section 363 of the Bankruptcy Code)
- Negotiating favorable employment terms with the seller’s unions as a purchaser
Modification of elimination or medical and other retiree benefits
For more information or to register for this event, please visit: http://www.pli.edu/product/webcast_detail.asp?id=63661