The court read an opinion on the motion of the ad hoc PSA committee to prevent the debtors from changing terms and conditions without first going through a section 1113 proceeding. The court denied the motion of the ad hoc PSA committee. Procedurally, the count found that this type of relief needs to be brought by adversary proceeding (law suit) and not by motion. Substantively, the court denied the motion after finding that section 1113 only applies to circumstances where there is a collective bargaining agreement. Under the Railway Labor Act (the "RLA") the employer is permitted to make unilateral changes outside of the bankruptcy process and therefore can also do so during the bankruptcy case. As a final matter, the court declined to direct the debtors to release mailing labels because this additional issue is currently being litigated before the District Court before the Northern District of Texas in connection with other election issues.
Lowenstein Sander PC
Sharon L. Levine, Esq.
S. Jason Teele, Esq.