Bankruptcy Law Case Summary – In re Trump Entertainment Resorts

On behalf of Furr & Cohen, P.A. posted in News on Friday, May 6, 2016.
On behalf of Furr & Cohen, P.A. posted in News on Friday, May 6, 2016.

In a bankruptcy action, the Bankruptcy Court’s grant of debtor’s motion to reject its collective bargaining agreement (CBA) with UNITE HERE Local 54 is affirmed. The court held that a Chapter 11 debtor-employer can reject the continuing terms and conditions of a CBA under 11 U.S.C. section 1113, despite the National Labor Relations Act’s prohibition on employers unilaterally changing the terms and conditions of a CBA after expiration under 29 U.S.C. section 158(a)(5).