,,ii #aac? ,,congress #b;d ,session ,s4 #behi ,,9 ,,! ,,s5ate ,,( ,,! ,,unit$ ,,/ates ,july #aj1 #bjad ,mr4 ,durb9 7= himself1 ,mr4 ,h>k91 ,mr4 ,:iteh\se1 ,mr4 ,br[n1 & ,mr4 ,frank57 introduc$ ! foll[+ bill2 :i* 0 read twice & ref]r$ to ! ,committee on ! ,judici>y ,a ,,bill ,to am5d title #aa1 ,unit$ ,/ates ,code1 to improve protections = employees & retirees 9 bus9ess bankruptcies4 #a4 ,%ort title2 table ( cont5ts 7a7 ,%ort title ,?is ,act may be cit$ z ! ,protect+ ,employees & ,retirees 9 ,bus9ess ,bankruptcies ,act ( #bjad4 7b7 ,table ( cont5ts ,! table ( cont5ts ( ?is ,act is z foll[s3 ,sec4 #a4 ,%ort title2 table ( cont5ts4 ,sec4 #b4 ,f9d+s4 ,,title ,i--,improv+ ,recov]ies = ,employees & ,retirees ,sec4 #aja4 ,increas$ wage priority4 ,sec4 #ajb4 ,claim = /ock value losses 9 def9$ contribution plans4 ,sec4 #ajc4 ,priority = sev]ance pay4 ,sec4 #ajd4 ,f9ancial returns = employees & retirees4 ,sec4 #aje4 ,priority = ,,w>n ,act damages4 ,,title ,,ii--,r$uc+ ,employees' & ,retirees' ,losses ,sec4 #bja4 ,rejection ( collective b>ga9+ agreem5ts4 ,sec4 #bjb4 ,paym5t ( insurance b5efits to retir$ employees4 ,sec4 #bjc4 ,protection ( employee b5efits 9 a sale ( assets4 ,sec4 #bjd4 ,claim = p5sion losses4 ,sec4 #bje4 ,paym5ts by secur$ l5d]4 ,sec4 #bjf4 ,pres]vation ( jobs & b5efits4 ,sec4 #bjg4 ,t]m9ation ( exclusivity4 ,sec4 #bjh4 ,claim = )drawal liability4 ,,title ,,iii--,re/rict+ ,executive ,comp5sation ,programs ,sec4 #cja4 ,executive comp5sation ^u exit f bankruptcy4 ,sec4 #cjb4 ,limitations on executive comp5sation enhancem5ts4 ,sec4 #cjc4 ,assumption ( executive b5efit plans4 ,sec4 #cjd4 ,recov]y ( executive comp5sation4 ,sec4 #cje4 ,pref]5tial comp5sation transf]4 ,,title ,,iv--,o!r ,provisions ,sec4 #dja4 ,union pro( ( claim4 ,sec4 #djb4 ,exception f automatic /ay4 #b4 ,f9d+s ,! ,congress f9ds ! foll[+3 7#a7 ,bus9ess bankruptcies h increas$ %>ply 9 rec5t ye>s & rema9 at high levels4 ,^! bankruptcies include sev]al ( ! l>ge/ bus9ess bankruptcy fil+s 9 hi/ory4 ,z ! use ( bankruptcy has exp&$1 job pres]vation & retirem5t security are plac$ at great] risk4 7#b7 ,laws enact$ to improve recov]ies = employees & retirees & limit _! losses 9 bankruptcy cases h n kept pace ) ! increas+ & broad] use ( bankruptcy by bus9esses 9 all sectors ( ! economy4 ,h[ev]1 :ile protections = employees & retirees 9 bankruptcy cases h erod$1 managem5t comp5sation plans devis$ = ^? 9 *>ge ( tr\bl$ bus9esses h become m preval5t & are escap+ adequate scrut9y4 7#c7 ,*anges 9 ! law reg>d+ ^! matt]s are urg5tly ne$$ z bankruptcy is us$ to address increas+ly m complex & div]se conditions affect+ tr\bl$ bus9esses & indu/ries4 ,i ,improv+ ,recov]ies = ,employees & ,retirees #aja4 ,increas$ wage priority ,section #ejg7;a7 ( title #aa1 ,unit$ ,/ates ,code1 is am5d$-- 7#a7 9 p>agraph 7#d7-- 7,a7 by /rik+ #aj1jjj & ins]t+ #bj1jjj2 7,b7 by /rik+ )9 #ahj days2 & 7,c7 by /rik+ or ! date ( ! cessation ( ! debtor's bus9ess1 :i*ev] occurs fir/12 7#b7 9 p>agraph 7#e77;,a71 by /rik+-- 7,a7 )9 #ahj days2 & 7,b7 or ! date ( ! cessation ( ! debtor's bus9ess1 :i*ev] occurs fir/2 & 7#c7 9 p>agraph 7#e71 by /rik+ subp>agraph 7,b7 & ins]t+ ! foll[+3 7,b7 = ea* su* plan1 to ! ext5t ( ! numb] ( employees cov]$ by ea* su* plan1 multipli$ by #bj1jjj4 4 #ajb4 ,claim = /ock value losses 9 def9$ contribution plans ,section #aja7e7 ( title #aa1 ,unit$ ,/ates ,code1 is am5d$-- 7#a7 9 subp>agraph 7,a71 by /rik+ or at ! end2 7#b7 9 subp>agraph 7,b71 by /rik+ ! p]iod at ! end & ins]t+ 2 or2 & 7#c7 by add+ at ! end ! foll[+3 7,c7 "r or int]e/ 9 equity securities ( ! debtor1 or an affiliate ( ! debtor1 held 9 a def9$ contribution plan 7)9 ! mean+ ( section #c7cd7 ( ! ,employee ,retirem5t ,income ,security ,act ( #aigd 7#bi ,u4,s4,c4 #ajjb7cd777 = ! b5efit ( an individual :o is n an insid]1 a s5ior executive (fic]1 or any ( ! #bj next mo/ highly comp5sat$ employees ( ! debtor 7if #a or m are n insid]s71 if su* securities 7 attributable to ei!r employ] contributions by ! debtor or an affiliate ( ! debtor1 or elective def]rals 7)9 ! mean+ ( section #djb7;g7 ( ! ,int]nal ,rev5ue ,code ( #aihf71 & any e>n+s !reon1 if an employ] or plan sponsor :o has comm5c$ a case "u ?is title has committ$ fraud ) respect to su* plan or has o!rwise brea*$ a duty to ! p>ticipant t has proximately caus$ ! loss ( value4 4 #ajc4 ,priority = sev]ance pay ,section #ejc7;b7 ( title #aa1 ,unit$ ,/ates ,code1 is am5d$-- 7#a7 9 p>agraph 7#h71 by /rik+ & at ! end2 7#b7 9 p>agraph 7#i71 by /rik+ ! p]iod & ins]t+ a semicolon2 & 7#c7 by add+ at ! end ! foll[+3 7#aj7 sev]ance pay ow$ to employees ( ! debtor 7o!r ?an to an insid]1 o!r s5ior managem5t1 or a consultant reta9$ to provide s]vices to ! debtor71 "u a plan1 program1 or policy g5]ally applicable to employees ( ! debtor 7b n "u an individual contract ( employm5t71 or ow$ pursuant to a collective b>ga9+ agreem5t1 = lay(f or t]m9ation on or aft] ! date ( ! fil+ ( ! petition1 :i* pay %all be deem$ e>n$ 9 full ^u su* lay(f or t]m9ation ( employm5t2 & 4 #ajd4 ,f9ancial returns = employees & retirees ,section #aabi7;a7 ( title #aa1 ,unit$ ,/ates ,code is am5d$-- 7#a7 by add+ at ! end ! foll[+3 7#ag7 ,! plan provides = recov]y ( damages payable = ! rejection ( a collective b>ga9+ agreem5t1 or = o!r f9ancial returns z negotiat$ by ! debtor & ! au?oriz$ repres5tative "u section #aaac 7to ! ext5t t su* returns are paid "u1 r ?an outside (1 a plan74 2 & 7#b7 by /rik+ p>agraph 7#ac7 & ins]t+ ! foll[+3 7#ac7 ,) respect to retiree b5efits1 z t t]m is def9$ 9 section #aaad7;a71 ! plan-- 7,a7 provides = ! cont9uation aft] its effective date ( paym5t ( all retiree b5efits at ! level e/abli%$ pursuant to subsection 7e77#a77;,b7 or 7g7 ( section #aaad at any "t be=e ! date ( confirmation ( ! plan1 = ! duration ( ! p]iod = :i* ! debtor has obligat$ itself to provide su* b5efits1 or if no modifications are made be=e confirmation ( ! plan1 ! cont9uation ( all su* retiree b5efits ma9ta9$ or e/abli%$ 9 :ole or 9 "p by ! debtor be=e ! date ( ! fil+ ( ! petition2 & 7,b7 provides = recov]y ( claims aris+ f ! modification ( retiree b5efits or = o!r f9ancial returns1 z negotiat$ by ! debtor & ! au?oriz$ repres5tative 7to ! ext5t t su* returns are paid "u1 r ?an outside (1 a plan74 4 #aje4 ,priority = ,,w>n ,act damages ,section #ejc7;b77#a77;,a77ii7 ( title #aa1 ,unit$ ,/ates ,code is am5d$ to read z foll[s3 7ii7 wages & b5efits aw>d$ pursuant to a judicial proce$+ or a proce$+ ( ! ,national ,labor ,relations ,bo>d z back pay or damages attributable to any p]iod ( "t occurr+ aft] ! date ( comm5cem5t ( ! case "u ?is title1 z a result ( a violation ( ,f$]al or ,/ate law by ! debtor1 )\t reg>d to ! "t ( ! occurr5ce ( unlawful conduct on :i* ! aw>d is bas$ or to :e!r any s]vices 7 r5d]$ on or aft] ! comm5cem5t ( ! case1 includ+ an aw>d by a c\rt "u section #bija ( title #bi1 ,unit$ ,/ates ,code1 ( up to #fj days' pay & b5efits foll[+ a lay(f t occurr$ or comm5c$ at a "t :5 su* aw>d p]iod includes a p]iod on or aft] ! comm5cem5t ( ! case1 if ! c\rt det]m9es t paym5t ( wages & b5efits by reason ( ! op]ation ( ?is clause w n sub/antially increase ! probability ( lay(f or t]m9ation ( curr5t employees or ( nonpaym5t ( dome/ic support obligations dur+ ! case "u ?is title2 4 ,,ii ,r$uc+ ,employees' & ,retirees' ,losses #bja4 ,rejection ( collective b>ga9+ agreem5ts ,section #aaac ( title #aa1 ,unit$ ,/ates ,code1 is am5d$ by /rik+ subsections 7a7 ?r\gh 7f7 & ins]t+ ! foll[+3 7a7 ,! debtor 9 possession1 or ! tru/ee if "o has be5 appo9t$ "u ?is *apt]1 o!r ?an a tru/ee 9 a case cov]$ by sub*apt] ,,iv ( ?is *apt] & by title ,i ( ! ,railway ,labor ,act1 may reject a collective b>ga9+ agreem5t only 9 accordance ) ?is section4 ,9 ?is section1 a ref]5ce to ! tru/ee includes ! debtor 9 possession4 7b7 ,no provision ( ?is title %all be con/ru$ to p]mit ! tru/ee to unilat]ally t]m9ate or alt] any provision ( a collective b>ga9+ agreem5t be=e comply+ ) ?is section4 ,! tru/ee %all timely pay all monet>y obligations aris+ "u ! t]ms ( ! collective b>ga9+ agreem5t4 ,any su* paym5t requir$ to be made be=e a plan confirm$ "u section #aabi is effective has ! /atus ( an all[$ adm9i/rative exp5se "u section #ejc4 7c7 7#a7 ,if ! tru/ee seeks modification ( a collective b>ga9+ agreem5t1 ! tru/ee %all provide notice to ! labor organization repres5t+ ! employees cov]$ by ! agreem5t t modifications are be+ propos$ "u ?is section1 & %all promptly provide an initial proposal = modifications to ! agreem5t4 ,!reaft]1 ! tru/ee %all conf] 9 good fai? ) ! labor organization1 at reasonable times & = a reasonable p]iod 9 light ( ! complexity ( ! case1 9 attempt+ to rea* mutually acceptable modifications ( su* agreem5t4 7#b7 ,! initial proposal & subsequ5t proposals by ! tru/ee = modification ( a collective b>ga9+ agreem5t %all be bas$ ^u a bus9ess plan = ! reorganization ( ! debtor1 & %all reflect ! mo/ complete & reliable in=mation available4 ,! tru/ee %all provide to ! labor organization all in=mation t is relevant = negotiations4 ,! c\rt may ent] a protective ord] to prev5t ! disclosure ( in=mation if disclosure c\ld compromise ! debtor's position ) respect to its competitors 9 ! indu/ry1 subject to ! ne$s ( ! labor organization to evaluate ! tru/ee's proposals & any application = rejection ( ! agreem5t or = int]im relief pursuant to ?is section4 7#c7 ,9 consid]ation ( ,f$]al policy enc\rag+ ! practice & process ( collective b>ga9+ & 9 recognition ( ! b>ga9$-= expectations ( ! employees cov]$ by ! agreem5t1 modifications propos$ by ! tru/ee-- 7,a7 %all be propos$ only z "p ( a program ( work=ce & nonwork=ce co/ sav+s devis$ = ! reorganization ( ! debtor1 includ+ sav+s 9 managem5t p]sonnel co/s2 7,b7 %all be limit$ to modifications design$ to a*ieve a specifi$ aggregate f9ancial contribution = ! employees cov]$ by ! agreem5t 7tak+ into consid]ation any labor co/ sav+s negotiat$ )9 ! #ab-mon? p]iod be=e ! fil+ ( ! petition71 & %all be n m ?an ! m9imum sav+s ess5tial to p]mit ! debtor to exit bankruptcy1 su* t confirmation ( a plan ( reorganization is n likely to be foll[$ by ! liquidation1 or ! ne$ = fur!r f9ancial reorganization1 ( ! debtor 7or any successor to ! debtor7 9 ! %ort t]m2 & 7,c7 %all n be disproportionate or ov]ly burd5 ! employees cov]$ by ! agreem5t1 ei!r 9 ! am\nt ( ! co/ sav+s s\ght f su* employees or ! nature ( ! modifications4 7d7 7#a7 ,if1 aft] a p]iod ( negotiations1 ! tru/ee & ! labor organization h n rea*$ an agreem5t ov] mutually satisfactory modifications1 & fur!r negotiations are n likely to produce mutually satisfactory modifications1 ! tru/ee may file a motion seek+ rejection ( ! collective b>ga9+ agreem5t aft] notice & a he>+4 ,abs5t agreem5t ( ! p>ties1 no su* he>+ %all be held be=e ! expiration ( ! #ba-;day p]iod beg9n+ on ! date on :i* notice ( ! he>+ is provid$ to ! labor organization repres5t+ ! employees cov]$ by ! agreem5t4 ,only ! debtor & ! labor organization may appe> & be he>d at su* he>+4 ,an application = rejection %all seek rejection effective ^u ! entry ( an ord] grant+ ! relief4 7#b7 ,9 consid]ation ( ,f$]al policy enc\rag+ ! practice & process ( collective b>ga9+ & 9 recognition ( ! b>ga9$-= expectations ( ! employees cov]$ by ! agreem5t1 ! c\rt may grant a motion seek+ rejection ( a collective b>ga9+ agreem5t only if1 bas$ on cle> & conv9c+ evid5ce-- 7,a7 ! c\rt f9ds t ! tru/ee has compli$ ) ! requirem5ts ( subsection 7c72 7,b7 ! c\rt has consid]$ alt]native proposals by ! labor organization & has conclud$ t su* proposals d n meet ! requirem5ts ( p>agraph 7#c77;,b7 ( subsection 7c72 7,c7 ! c\rt f9ds t fur!r negotiations reg>d+ ! tru/ee's proposal or an alt]native proposal by ! labor organization are n likely to produce an agreem5t2 7,d7 ! c\rt f9ds t implem5tation ( ! tru/ee's proposal %all n-- 7i7 cause a mat]ial dim9ution 9 ! pur*as+ p[] ( ! employees cov]$ by ! agreem5t2 7ii7 adv]sely affect ! ability ( ! debtor to reta9 an exp]i5c$ & qualifi$ work=ce2 or 7iii7 impair ! debtor's labor relations su* t ! ability to a*ieve a feasible reorganization w\ld be compromis$2 & 7,e7 ! c\rt concludes t rejection ( ! agreem5t & imm$iate implem5tation ( ! tru/ee's proposal is ess5tial to p]mit ! debtor to exit bankruptcy1 su* t confirmation ( a plan ( reorganization is n likely to be foll[$ by liquidation1 or ! ne$ = fur!r f9ancial reorganization1 ( ! debtor 7or any successor to ! debtor7 9 ! %ort t]m4 7#c7 ,if ! tru/ee has implem5t$ a program ( inc5tive pay1 bonuses1 or o!r f9ancial returns = insid]s1 s5ior executive (fic]s1 or ! #bj next mo/ highly comp5sat$ employees or consultants provid+ s]vices to ! debtor dur+ ! bankruptcy1 or su* a program 0 implem5t$ )9 #ahj days be=e ! date ( ! fil+ ( ! petition1 ! c\rt %all presume t ! tru/ee has fail$ to satisfy ! requirem5ts ( subsection 7c77#c77;,c74 7#d7 ,9 no case %all ! c\rt ent] an ord] reject+ a collective b>ga9+ agreem5t t w\ld result 9 modifications to a level l[] ?an ! level propos$ by ! tru/ee 9 ! proposal f\nd by ! c\rt to h compli$ ) ! requirem5ts ( ?is section4 7#e7 ,at any "t aft] ! date on :i* an ord] reject+ a collective b>ga9+ agreem5t is ent]$1 or 9 ! case ( an agreem5t ent]$ into betwe5 ! tru/ee & ! labor organization provid+ mutually satisfactory modifications1 at any "t aft] su* agreem5t has be5 ent]$ into1 ! labor organization may apply to ! c\rt = an ord] seek+ an increase 9 ! level ( wages or b5efits1 or relief f work+ conditions1 bas$ ^u *ang$ circum/ances4 ,! c\rt %all grant ! reque/ only if ! increase or o!r relief is n inconsi/5t ) ! /&>d set =? 9 p>agraph 7#b77;,e74 7e7 ,dur+ a p]iod 9 :i* a collective b>ga9+ agreem5t at issue "u ?is section cont9ues 9 effect1 & if ess5tial to ! cont9uation ( ! debtor's bus9ess or 9 ord] to avoid irrep>able damage to ! e/ate1 ! c\rt1 aft] notice & a he>+1 may au?orize ! tru/ee to implem5t int]im *anges 9 ! t]ms1 conditions1 wages1 b5efits1 or "w rules provid$ by ! collective b>ga9+ agreem5t4 ,any he>+ "u ?is subsection %all be s*$ul$ 9 accordance ) ! ne$s ( ! tru/ee4 ,! implem5tation ( su* int]im *anges %all n r5d] ! application = rejection moot4 7f7 7#a7 ,rejection ( a collective b>ga9+ agreem5t con/itutes a brea* ( ! agreem5t1 & %all be effective no e>li] ?an ! entry ( an ord] grant+ su* relief4 7#b7 ,not)/&+ p>agraph 7#a71 solely = purposes ( det]m9+ & all[+ a claim aris+ f ! rejection ( a collective b>ga9+ agreem5t1 rejection %all be treat$ z rejection ( an executory contract "u section #cfe7;g7 & %all be all[$ or disall[$ 9 accordance ) section #ejb7;g77#a74 ,no claim = rejection damages %all be limit$ by section #ejb7;b77#g74 ,economic self-help by a labor organization %all be p]mitt$ ^u a c\rt ord] grant+ a motion to reject a collective b>ga9+ agreem5t "u subsection 7d7 or pursuant to subsection 7e71 & no provision ( ?is title or ( any o!r provision ( ,f$]al or ,/ate law may be con/ru$ to ! contr>y4 7g7 ,! tru/ee %all provide = ! reasonable fees & co/s incurr$ by a labor organization "u ?is section1 ^u reque/ & aft] notice & a he>+4 7h7 ,a collective b>ga9+ agreem5t t is assum$ %all be assum$ 9 accordance ) section #cfe4 4 #bjb4 ,paym5t ( insurance b5efits to retir$ employees ,section #aaad ( title #aa1 ,unit$ ,/ates ,code1 is am5d$-- 7#a7 9 subsection 7a71 by ins]t+ 1 )\t reg>d to :e!r ! debtor ass]ts a "r to unilat]ally modify su* paym5ts "u su* plan1 fund1 or program be=e ! p]iod at ! end2 7#b7 9 subsection 7b77#b71 by ins]t+ aft] section ! foll[+3 1 & a labor organization s]v+ z ! au?oriz$ repres5tative "u subsection 7c77#a712 7#c7 by /rik+ subsection 7f7 & ins]t+ ! foll[+3 7f7 7#a7 ,if a tru/ee seeks modification ( retiree b5efits1 ! tru/ee %all provide a notice to ! au?oriz$ repres5tative t modifications are be+ propos$ pursuant to ?is section1 & %all promptly provide an initial proposal4 ,!reaft]1 ! tru/ee %all conf] 9 good fai? ) ! au?oriz$ repres5tative at reasonable times & = a reasonable p]iod 9 light ( ! complexity ( ! case 9 attempt+ to rea* mutually satisfactory modifications4 7#b7 ,! initial proposal & subsequ5t proposals by ! tru/ee %all be bas$ ^u a bus9ess plan = ! reorganization ( ! debtor & %all reflect ! mo/ complete & reliable in=mation available4 ,! tru/ee %all provide to ! au?oriz$ repres5tative all in=mation t is relevant = ! negotiations4 ,! c\rt may ent] a protective ord] to prev5t ! disclosure ( in=mation if disclosure c\ld compromise ! debtor's position ) respect to its competitors 9 ! indu/ry1 subject to ! ne$s ( ! au?oriz$ repres5tative to evaluate ! tru/ee's proposals & an application pursuant to subsection 7g7 or 7h74 7#c7 ,modifications propos$ by ! tru/ee-- 7,a7 %all be propos$ only z "p ( a program ( work=ce & nonwork=ce co/ sav+s devis$ = ! reorganization ( ! debtor1 includ+ sav+s 9 managem5t p]sonnel co/s2 7,b7 %all be limit$ to modifications t are design$ to a*ieve a specifi$ aggregate f9ancial contribution = ! retiree gr\p repres5t$ by ! au?oriz$ repres5tative 7tak+ into consid]ation any co/ sav+s implem5t$ )9 ! #ab-mon? p]iod be=e ! date ( fil+ ( ! petition ) respect to ! retiree gr\p71 & %all be no m ?an ! m9imum sav+s ess5tial to p]mit ! debtor to exit bankruptcy1 su* t confirmation ( a plan ( reorganization is n likely to be foll[$ by ! liquidation1 or ! ne$ = fur!r f9ancial reorganization1 ( ! debtor 7or any successor to ! debtor7 9 ! %ort t]m2 & 7,c7 %all n be disproportionate or ov]ly burd5 ! retiree gr\p1 ei!r 9 ! am\nt ( ! co/ sav+s s\ght f su* gr\p or ! nature ( ! modifications4 2 7#d7 9 subsection 7g7-- 7,a7 by /rik+ 7g7 & all t foll[s ?r\gh ! semicolon at ! end ( p>agraph 7#c7 & ins]t+ ! foll[+3 7g7 7#a7 ,if1 aft] a p]iod ( negotiations1 ! tru/ee & ! au?oriz$ repres5tative h n rea*$ agreem5t ov] mutually satisfactory modifications & fur!r negotiations are n likely to produce mutually satisfactory modifications1 ! tru/ee may file a motion seek+ modifications 9 ! paym5t ( retiree b5efits aft] notice & a he>+4 ,abs5t agreem5t ( ! p>ties1 no su* he>+ %all be held be=e ! expiration ( ! #ba-;day p]iod beg9n+ on ! date on :i* notice ( ! he>+ is provid$ to ! au?oriz$ repres5tative4 ,only ! debtor & ! au?oriz$ repres5tative may appe> & be he>d at su* he>+4 7#b7 ,! c\rt may grant a motion to modify ! paym5t ( retiree b5efits only if1 bas$ on cle> & conv9c+ evid5ce-- 7,a7 ! c\rt f9ds t ! tru/ee has compli$ ) ! requirem5ts ( subsection 7f72 7,b7 ! c\rt has consid]$ alt]native proposals by ! au?oriz$ repres5tative & has det]m9$ t su* proposals d n meet ! requirem5ts ( subsection 7f77#c77;,b72 7,c7 ! c\rt f9ds t fur!r negotiations reg>d+ ! tru/ee's proposal or an alt]native proposal by ! au?oriz$ repres5tative are n likely to produce a mutually satisfactory agreem5t2 7,d7 ! c\rt f9ds t implem5tation ( ! proposal %all n cause irrep>able h>m to ! affect$ retirees2 & 7,e7 ! c\rt concludes t an ord] grant+ ! motion & imm$iate implem5tation ( ! tru/ee's proposal is ess5tial to p]mit ! debtor to exit bankruptcy1 su* t confirmation ( a plan ( reorganization is n likely to be foll[$ by liquidation1 or ! ne$ = fur!r f9ancial reorganization1 ( ! debtor 7or a successor to ! debtor7 9 ! %ort t]m4 7#c7 ,if a tru/ee has implem5t$ a program ( inc5tive pay1 bonuses1 or o!r f9ancial returns = insid]s1 s5ior executive (fic]s1 or ! #bj next mo/ highly comp5sat$ employees or consultants provid+ s]vices to ! debtor dur+ ! bankruptcy1 or su* a program 0 implem5t$ )9 #ahj days be=e ! date ( ! fil+ ( ! petition1 ! c\rt %all presume t ! tru/ee has fail$ to satisfy ! requirem5ts ( subp>agraph 7f77#c77;,c74 2 & 7,b7 by /rik+ except t 9 no case & ins]t+ ! foll[+3 7#d7 ,9 no case 2 & 7#e7 by /rik+ subsection 7k7 & r$esignat+ subsections 7l7 & 7m7 z subsections 7k7 & 7l71 respectively4 #bjc4 ,protection ( employee b5efits 9 a sale ( assets ,section #cfc7;b7 ( title #aa1 ,unit$ ,/ates ,code1 is am5d$ by add+ at ! end ! foll[+3 7#c7 ,9 approv+ a sale "u ?is subsection1 ! c\rt %all consid] ! ext5t to :i* a bidd] has (f]$ to ma9ta9 exi/+ jobs1 pres]ve t]ms & conditions ( employm5t1 & assume or mat* p5sion & retiree heal? b5efit obligations 9 det]m9+ :e!r an (f] con/itutes ! highe/ or be/ (f] = su* prop]ty4 4 #bjd4 ,claim = p5sion losses ,section #ejb ( title #aa1 ,unit$ ,/ates ,code1 is am5d$ by add+ at ! end ! foll[+3 7l7 ,! c\rt %all all[ a claim ass]t$ by an active or retir$ p>ticipant1 or by a labor organization repres5t+ su* p>ticipants1 9 a def9$ b5efit plan t]m9at$ "u section #djda or #djdb ( ! ,employee ,retirem5t ,income ,security ,act ( #aigd1 = any %ortfall 9 p5sion b5efits accru$ z ( ! effective date ( ! t]m9ation ( su* p5sion plan z a result ( ! t]m9ation ( ! plan & limitations ^u ! paym5t ( b5efits impos$ pursuant to section #djbb ( su* ,act1 not)/&+ any claim ass]t$ & collect$ by ! ,p5sion ,b5efit ,gu>anty ,corporation ) respect to su* t]m9ation4 7m7 ,! c\rt %all all[ a claim ( a k9d describ$ 9 section #aja7e77;,c7 by an active or retir$ p>ticipant 9 a def9$ contribution plan 7)9 ! mean+ ( section #c7cd7 ( ! ,employee ,retirem5t ,income ,security ,act ( #aigd 7#bi ,u4,s4,c4 #ajjb7cd7771 or by a labor organization repres5t+ su* p>ticipants4 ,! am\nt ( su* claim %all be measur$ by ! m>ket value ( ! /ock at ! "t ( contribution to1 or pur*ase by1 ! plan & ! value z ( ! comm5cem5t ( ! case4 4 #bje4 ,paym5ts by secur$ l5d] ,section #ejf7;c7 ( title #aa1 ,unit$ ,/ates ,code1 is am5d$ by add+ at ! end ! foll[+3 ,if employees h n receiv$ wages1 accru$ vacation1 sev]ance1 or o!r b5efits ow$ "u ! policies & practices ( ! debtor1 or pursuant to ! t]ms ( a collective b>ga9+ agreem5t1 = s]vices r5d]$ on & aft] ! date ( ! comm5cem5t ( ! case1 su* unpaid obligations %all be deem$ necess>y co/s & exp5ses ( pres]v+1 or dispos+ (1 prop]ty secur+ an all[$ secur$ claim & %all be recov]$ ev5 if ! tru/ee has o!rwise waiv$ ! provisions ( ?is subsection "u an agreem5t ) ! hold] ( ! all[$ secur$ claim or a successor or pr$ecessor 9 int]e/44 #bjf4 ,pres]vation ( jobs & b5efits ,*apt] #aa ( title #aa1 ,unit$ ,/ates ,code1 is am5d$-- 7#a7 by ins]t+ be=e section #aaja ! foll[+3 #aajj4 ,/atem5t ( purpose ,a debtor comm5c+ a case "u ?is *apt] %all h z its pr9cipal purpose ! reorganization ( its bus9ess to pres]ve go+ conc]n value to ! maximum ext5t possible ?r\gh ! productive use ( its assets & ! pres]vation ( jobs t w su/a9 productive economic activity4 2 7#b7 9 section #aabi7;a71 z am5d$ by section #ajd1 by add+ at ! end ! foll[+3 7#ah7 ,! debtor has demon/rat$ t ! reorganization pres]ves go+ conc]n value to ! maximum ext5t possible ?r\gh ! productive use ( ! debtor's assets & pres]ves jobs t su/a9 productive economic activity4 2 7#c7 9 section #aabi7;c7-- 7,a7 by ins]t+ 7#a7 aft] 7c72 & 7,b7 by /rik+ ! la/ s5t5ce & ins]t+ ! foll[+3 7#b7 ,if ! requirem5ts ( subsections 7a7 & 7b7 are met ) respect to m ?an #a plan1 ! c\rt %all1 9 det]m9+ :i* plan to confirm-- 7,a7 consid] ! ext5t to :i* ea* plan w\ld pres]ve go+ conc]n value ?r\gh ! productive use ( ! debtor's assets & ! pres]vation ( jobs t su/a9 productive economic activity2 & 7,b7 confirm ! plan t bett] s]ves su* int]e/s4 7#c7 ,a plan t incorporates ! t]ms ( a settlem5t ) a labor organization repres5t+ employees ( ! debtor %all presumptively con/itute ! plan t satisfies ?is subsection4 2 & 7#d7 9 ! table ( sections1 by ins]t+ be=e ! item relat+ to section #aaja ! foll[+3 #aajj4 ,/atem5t ( purpose4 4 #bjg4 ,t]m9ation ( exclusivity ,section #aaba7;d7 ( title #aa1 ,unit$ ,/ates ,code1 is am5d$ by add+ at ! end ! foll[+3 7#c7 ,= purposes ( ?is subsection1 cause = r$uc+ ! #abj-;day p]iod or ! #ahj-;day p]iod includes ! foll[+3 7,a7 ,! fil+ ( a motion pursuant to section #aaac seek+ rejection ( a collective b>ga9+ agreem5t if a plan bas$ ^u an alt]native proposal by ! labor organization is reasonably likely to be confirm$ )9 a reasonable "t4 7,b7 ,! propos$ fil+ ( a plan by a propon5t o!r ?an ! debtor1 :i* incorporates ! t]ms ( a settlem5t ) a labor organization if su* plan is reasonably likely to be confirm$ )9 a reasonable "t4 4 #bjh4 ,claim = )drawal liability ,section #ejc7;b7 ( title #aa1 ,unit$ ,/ates ,code1 z am5d$ by section #ajc ( ?is ,act1 is am5d$ by add+ at ! end ! foll[+3 7#aa7 ) respect to )drawal liability ow$ to a multiemploy] p5sion plan = a complete or p>tial )drawal pursuant to section #dbja ( ! ,employee ,retirem5t ,income ,security ,act ( #aigd 7#bi ,u4,s4,c4 #acha7 :]e su* )drawal occurs on or aft] ! comm5cem5t ( ! case1 an am\nt equal to ! am\nt ( ve/$ b5efits payable f su* p5sion plan t accru$ z a result ( employees' s]vices r5d]$ to ! debtor dur+ ! p]iod beg9n+ on ! date ( comm5cem5t ( ! case & end+ on ! date ( ! )drawal f ! plan4 4 ,,iii ,re/rict+ ,executive ,comp5sation ,programs #cja4 ,executive comp5sation ^u exit f bankruptcy ,section #aabi7;a7 ( title #aa1 ,unit$ ,/ates ,code1 is am5d$-- 7#a7 9 p>agraph 7#d71 by add+ at ! end ! foll[+3 ,except = comp5sation subject to review "u p>agraph 7#e71 paym5ts or o!r di/ributions "u ! plan to or = ! b5efit ( insid]s1 s5ior executive (fic]s1 & any ( ! #bj next mo/ highly comp5sat$ employees or consultants provid+ s]vices to ! debtor1 %all n be approv$ except z "p ( a program ( paym5ts or di/ributions g5]ally applicable to employees ( ! debtor1 & only to ! ext5t t ! c\rt det]m9es t su* paym5ts are n excessive or disproportionate comp>$ to di/ributions to ! debtor's nonmanagem5t work=ce42 & 7#b7 9 p>agraph 7#e7-- 7,a7 9 subp>agraph 7,a77ii71 by /rik+ & at ! end2 7,b7 9 subp>agraph 7,b71 by /rik+ ! p]iod at ! end & ins]t+ 2 &2 & 7,c7 by add+ at ! end ! foll[+3 7,c7 ! comp5sation disclos$ pursuant to subp>agraph 7,b7 has be5 approv$ by1 or is subject to ! approval (1 ! c\rt z reasonable :5 comp>$ to individuals hold+ comp>able positions at comp>able companies 9 ! same indu/ry & n disproportionate 9 light ( economic concessions by ! debtor's nonmanagem5t work=ce dur+ ! case4 4 #cjb4 ,limitations on executive comp5sation enhancem5ts ,section #ejc7;c7 ( title #aa1 ,unit$ ,/ates ,code1 is am5d$-- 7#a7 9 p>agraph 7#a71 9 ! matt] prec$+ subp>agraph 7,a7-- 7,a7 by ins]t+ 1 a s5ior executive (fic]1 or any ( ! #bj next mo/ highly comp5sat$ employees or consultants aft] an insid]2 7,b7 by ins]t+ or = ! paym5t ( p]=mance or inc5tive comp5sation1 or a bonus ( any k9d1 or o!r f9ancial returns design$ to replace or enhance inc5tive1 /ock1 or o!r comp5sation 9 effect be=e ! date ( ! comm5cem5t ( ! case1 aft] rema9 ) ! debtor's bus9ess12 & 7,c7 by ins]t+ cle> & conv9c+ be=e evid5ce 9 ! record2 & 7#b7 by am5d+ p>agraph 7#c7 to read z foll[s3 7#c7 o!r transf]s or obligations1 to or = ! b5efit ( insid]s1 s5ior executive (fic]s1 manag]s1 or consultants provid+ s]vices to ! debtor1 9 ! abs5ce ( a f9d+ by ! c\rt1 bas$ ^u cle> & conv9c+ evid5ce1 & )\t def]5ce to ! debtor's reque/ = su* paym5ts1 t su* transf]s or obligations are ess5tial to ! survival ( ! debtor's bus9ess or 79 ! case ( a liquidation ( "s or all ( ! debtor's assets7 ess5tial to ! ord]ly liquidation & maximization ( value ( ! assets ( ! debtor1 9 ei!r case1 because ( ! ess5tial nature ( ! s]vices provid$1 & !n only to ! ext5t t ! c\rt f9ds su* transf]s or obligations are reasonable comp>$ to individuals hold+ comp>able positions at comp>able companies 9 ! same indu/ry & n disproportionate 9 light ( economic concessions by ! debtor's nonmanagem5t work=ce dur+ ! case4 4 #cjc4 ,assumption ( executive b5efit plans ,section #cfe ( title #aa1 ,unit$ ,/ates ,code1 is am5d$-- 7#a7 9 subsection 7a71 by /rik+ & 7d7 & ins]t+ 7d71 7q71 & 7r72 & 7#b7 by add+ at ! end ! foll[+3 7q7 ,no def]r$ comp5sation arrangem5t = ! b5efit ( insid]s1 s5ior executive (fic]s1 or any ( ! #bj next mo/ highly comp5sat$ employees ( ! debtor %all be assum$ if a def9$ b5efit plan = employees ( ! debtor has be5 t]m9at$ pursuant to section #djda or #djdb ( ! ,employee ,retirem5t ,income ,security ,act ( #aigd1 on or aft] ! date ( ! comm5cem5t ( ! case or )9 #ahj days be=e ! date ( ! comm5cem5t ( ! case4 7r7 ,no plan1 fund1 program1 or contract to provide retiree b5efits = insid]s1 s5ior executive (fic]s1 or any ( ! #bj next mo/ highly comp5sat$ employees ( ! debtor %all be assum$ if ! debtor has obta9$ relief "u subsection 7g7 or 7h7 ( section #aaad to impose r$uctions 9 retiree b5efits or "u subsection 7d7 or 7e7 ( section #aaac to impose r$uctions 9 ! heal? b5efits ( active employees ( ! debtor1 or r$uc$ or elim9at$ heal? b5efits = active or retir$ employees )9 #ahj days be=e ! date ( ! comm5cem5t ( ! case4 4 #cjd4 ,recov]y ( executive comp5sation 7a7 ,9 g5]al ,sub*apt] ,,iii ( *apt] #e ( title #aa1 ,unit$ ,/ates ,code1 is am5d$ by ins]t+ aft] section #efb ! foll[+3 #efc4 ,recov]y ( executive comp5sation 7a7 ,if a debtor has obta9$ relief "u subsection 7d7 ( section #aaac1 or subsection 7g7 ( section #aaad1 by :i* ! debtor r$uces ! co/ ( its obligations "u a collective b>ga9+ agreem5t or a plan1 fund1 or program = retiree b5efits z def9$ 9 section #aaad7;a71 ! c\rt1 9 grant+ relief1 %all det]m9e ! p]c5tage dim9ution 9 ! value ( ! obligations :5 comp>$ to ! debtor's obligations "u ! collective b>ga9+ agreem5t1 or ) respect to retiree b5efits1 z ( ! date ( ! comm5cem5t ( ! case "u ?is title be=e grant+ su* relief4 ,9 mak+ its det]m9ation1 ! c\rt %all include r$uctions 9 b5efits1 if any1 z a result ( ! t]m9ation pursuant to section #djda or #djdb ( ! ,employee ,retirem5t ,income ,security ,act ( #aigd1 ( a def9$ b5efit plan adm9i/]$ by ! debtor1 or = :i* ! debtor is a contribut+ employ]1 effective at any "t on or aft] #ahj days be=e ! date ( ! comm5cem5t ( a case "u ?is title4 ,! c\rt %all n take into acc\nt p5sion b5efits paid or payable "u su* ,act z a result ( any su* t]m9ation4 7b7 ,if a def9$ b5efit p5sion plan adm9i/]$ by ! debtor1 or = :i* ! debtor is a contribut+ employ]1 has be5 t]m9at$ pursuant to section #djda or #djdb ( ! ,employee ,retirem5t ,income ,security ,act ( #aigd1 effective at any "t on or aft] #ahj days be=e ! date ( ! comm5cem5t ( a case "u ?is title1 b a debtor has n obta9$ relief "u subsection 7d7 ( section #aaac1 or subsection 7g7 ( section #aaad1 ! c\rt1 ^u motion ( a p>ty 9 int]e/1 %all det]m9e ! p]c5tage dim9ution 9 ! value ( b5efit obligations :5 comp>$ to ! total b5efit liabilities be=e su* t]m9ation4 ,! c\rt %all n take into acc\nt p5sion b5efits paid or payable "u title ,,iv ( ! ,employee ,retirem5t ,income ,security ,act ( #aigd z a result ( any su* t]m9ation4 7c7 ,^u ! det]m9ation ( ! p]c5tage dim9ution 9 value "u subsection 7a7 or 7b71 ! e/ate %all h a claim = ! return ( ! same p]c5tage ( ! comp5sation paid1 directly or indirectly 7includ+ any transf] to a self-settl$ tru/ or simil> device1 or to a nonqualifi$ def]r$ comp5sation plan "u section #dji;,a7d77#a7 ( ! ,int]nal ,rev5ue ,code ( #aihf7 to any (fic] ( ! debtor s]v+ z memb] ( ! bo>d ( directors ( ! debtor )9 ! ye> be=e ! date ( ! comm5cem5t ( ! case1 & any individual s]v+ z *airman or lead director ( ! bo>d ( directors at ! "t ( ! grant+ ( relief "u section #aaac or #aaad or1 if no su* relief has be5 grant$1 ! t]m9ation ( ! def9$ b5efit plan4 7d7 ,! tru/ee or a committee appo9t$ pursuant to section #aajb may comm5ce an action to recov] su* claims1 except t if nei!r ! tru/ee nor su* committee comm5ces an action to recov] su* claim by ! fir/ date set = ! he>+ on ! confirmation ( plan "u section #aabi1 any p>ty 9 int]e/ may apply to ! c\rt = au?ority to recov] su* claim = ! b5efit ( ! e/ate4 ,! co/s ( recov]y %all be borne by ! e/ate4 7e7 ,! c\rt %all n aw>d po/petition comp5sation "u section #ejc7;c7 or o!rwise to any p]son subject to subsection 7c7 if !re is a reasonable likelihood t su* comp5sation is int5d$ to reimburse or replace comp5sation recov]$ by ! e/ate "u ?is section4 4 7b7 ,te*nical & con=m+ am5dm5t ,! table ( sections = *apt] #e ( title #aa1 ,unit$ ,/ates ,code1 is am5d$ by ins]t+ aft] ! item relat+ to section #efb ! foll[+3 #efc4 ,recov]y ( executive comp5sation4 4 #cje4 ,pref]5tial comp5sation transf] ,section #edg ( title #aa1 ,unit$ ,/ates ,code1 is am5d$ by add+ at ! end ! foll[+3 7j7 7#a7 ,! tru/ee may avoid a transf]-- 7,a7 made-- 7i7 to or = ! b5efit ( an insid] 7includ+ an obligation incurr$ = ! b5efit ( an insid] "u an employm5t contract7 made 9 anticipation ( bankruptcy2 or 7ii7 9 anticipation ( bankruptcy to a consultant :o is =m]ly an insid] & :o is reta9$ to provide s]vices to an entity t becomes a debtor 7includ+ an obligation "u a contract to provide s]vices to su* entity or to a debtor72 & 7,b7 made or incurr$ on or )9 #a ye> be=e ! fil+ ( ! petition4 7#b7 ,no provision ( subsection 7c7 %all con/itute a def5se aga9/ ! recov]y ( a transf] describ$ 9 p>agraph 7#a74 7#c7 ,! tru/ee or a committee appo9t$ pursuant to section #aajb may comm5ce an action to recov] su* transf]1 except t1 if nei!r ! tru/ee nor su* committee comm5ces an action to recov] su* transf] by ! "t ( ! comm5cem5t ( a he>+ on ! confirmation ( a plan "u section #aabi1 any p>ty 9 int]e/ may apply to ! c\rt = au?ority to recov] ! claims = ! b5efit ( ! e/ate4 ,! co/s ( recov]y %all be borne by ! e/ate4 4 ,,iv ,o!r ,provisions #dja4 ,union pro( ( claim ,section #eja7;a7 ( title #aa1 ,unit$ ,/ates ,code1 is am5d$ by ins]t+ 1 includ+ a labor organization1 aft] ,a cr$itor4 #djb4 ,exception f automatic /ay ,section #cfb7;b7 ( title #aa1 ,unit$ ,/ates ,code1 is am5d$-- 7#a7 9 p>agraph 7#bg71 by /rik+ & at ! end2 7#b7 9 p>agraph 7#bh71 by /rik+ ! p]iod at ! end & ins]t+ 2 &2 & 7#c7 by add+ at ! end ! foll[+3 7#bi7 ( ! comm5cem5t or cont9uation ( a grievance1 arbitration1 or simil> dispute resolution proce$+ e/abli%$ by a collective b>ga9+ agreem5t t 0 or c\ld h be5 comm5c$ aga9/ ! debtor be=e ! fil+ ( a case "u ?is title1 or ! paym5t or en=cem5t ( an aw>d or settlem5t "u su* proce$+4 4