Source: (or lookup the code)
https://www.law.cornell.edu/uscode/text/11/1113
6 replies (most recent on top)
DFA is a (potential) buyer and nothing else. DFA is not in chapter 11. Dean Foods is. Therefore, they are not required to do anything but what they want to do.
The law is for the current company (dean's).if you read the just over 100 pages filed dfa is asking the court to approve not recognizing cba agreements made by dean....
Well if someone would read the law they would see that section 1113 is for a chapter 11 company to make changes to a Cba. So please don't talk about someone s education level.
Both the prior posters are wrong, and obviously uninformed on how bankruptcy works, what the court and judge will/will not allow, etc. The reason for filing Ch 11 is just that - cut pensions, get rid of CBAs, and reduce debt. And if you think the court will NOT approve that, then you must have a less than high school education. This is a forced sale - Dean Foods has no other options on the table (as of now) and will have to do whatever it takes to maximize returns to bondholders, DIP, DFA, etc. That means, first employees, unions, etc. and then, shareholders will get the shaft. Take it or leave it.
What would compel DFA to follow a rule of the US Bankruptcy Code? As the previous poster stated, this only applies to companies operating under a chapter 11 situation. Once the sale is approved, and it likely will be, DFA has no legal requirement to follow section 1113. I highly doubt that they will attempt to throw out the unions. However, they need to be brought into line with wages and benefits more similar to their non-union counterparts. Im sorry running a jug filler is not a $50k+ a year job.
Would be nice except that would be prior to a sale. Dfa will not be the D.i.p. or debtors in possession. That rule apply if Dean wanted to change a C.b.a while in capt 11.