, “Rejection of Collective Bargaining Agreements,” codifies under what circumstances collective bargaining agreements may be rejected in a Chapter 11 Bankruptcy. When a company seeks to reject or modify a collective bargaining agreement under Chapter 11 of the U.S. Bankruptcy Code, Bankruptcy Code §1113, entitled Rejection of Collective Bargaining Agreements, clarifies the circumstances under which such agreements may be rejected. Section 1113(b) and (c) generally require the following steps: The debtor must make a proposal to the union to modify the collective bargaining agreement anytime after filing a petition and before an application seeking rejection of the agreement. The proposal must be based on the most complete and reliable information available at the time of the proposal. The proposed modifications in employees' benefits and protections are those necessary to permit the reorganization of the debtor. The proposed modifications must assure that all creditors, the debtor and all of the affected parties are treated fairly and equitably. The debtor must provide the union with such relevant information as is necessary to evaluate the proposal. The debtor must meet at reasonable times with the union between the time of the making of the proposal and the hearing on the application to reject the collective bargaining agreement. The debtor must confer in good faith with the union in attempting to reach mutually satisfactory modifications of the agreement. The union must have refused to accept the debtor's proposal without good cause. The balance of equities clearly favors the rejection of the collective bargaining agreement. History Congress enacted Section 1113 favoring voluntary solutions in response to NLRB v. Bildisco & Bildisco 465 U.S. 513 (1984) where the Supreme Court concluded that a debtor could reject a collective bargaining agreement without engaging in collective bargaining and that such unilateral alterations by a debtor would not violate the National Labor Relations Act (NLRA) . Explanation However, even with §1113, rejection of a collective bargaining agreement is allowed under this specific procedure. Once in bankruptcy, a debtor may file a motion to reject the collective bargaining agreement any time, provided that the debtor first fulfills its obligation to make a proposal to the union regarding "necessary" modifications to the collective bargaining agreement, provides the union with relevant information necessary to evaluate the proposal, and makes a good-faith effort to meet and confer with the union regarding the proposal. Procedure The court must schedule a hearing within 14 days