<font face="Verdana, Arial, Helvetica, sans-serif" size="2">Originally posted by mdtony:
Yes, after all, it is the company that gets to decide what they want the bankruptcy court to address.</font>
AFAIK, in the case of labor contracts, the Debtor is the only party allowed to seek relief under Section 1113 of the BK Code. As a result of Frank Lorenzo's shenanigans with CO in 1983, obtaining contract relief requires the Debtor to overcome a very high legal burden, which would not be assured even in UAL's case.
An 1113 letter is a mutually beneficial deal for management and labor. Labor benefits from an 1113 letter because the workers are protected against further erosion in their pay and workrules. Management benefits by using the threat of abrogation in BK as leverage to obtain a meaningful concessionary contract.
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[This message has been edited by avek00 (edited 10-23-2002).]