In re: MISSION COAL COMPANY, LLC, et al.,1 Debtors., 2019 Bankr. LEXIS 660

Summary

HOLDINGS: [1]-Debtors carried their burden of showing that, absent the rejection of CBAs under 11 U.S.C.S. § 1113 and modification of union-related retiree benefits under 11 U.S.C.S. § 1114, sale of their assets would not close and conversion of the cases to Chapter 7 and a piecemeal liquidation would ensue and thus, the relief sought was necessary to permit debtors' reorganization; [2]-Debtors satisfied the statutory requirements of 11 U.S.C.S. § 1113 and 1114 because, inter alia, they made four proposals to the union to modify the CBAs prior to filing the application to reject the agreement; their fourth proposal was based on the most complete and reliable information; they showed that they would be unable to consummate a sale or confirm a plan of reorganization and would thus face certain liquidation absent the relief sought; and debtors conferred with the union in good faith.