Wilmington and Philadelphia partner Andy Kassner and associate Joe Argentina co-authored an article for the Legal Intelligencer titled, “American Airlines Rejects Its Collective Bargaining Agreements.”

The article notes the particular significance of collective bargaining agreements in airline bankruptcy cases due to the large unionized labor force and impact of labor costs on airline profitability.

Andy and Joe discuss Section 1113 of the Bankruptcy Code, which imposes special substantive and procedural requirements on debtors who desire to reject collective bargaining agreements, and how it was applied in the recent bankruptcy filing of American Airlines.

They say the “American Airlines decision makes for interesting reading for both bankruptcy and labor specialists, both in the factual analysis performed by the court and how this court reached its conclusions in applying Section 1113.”