1.Short title; table of contents
(a)This Act may be cited as the
Protecting Employees and Retirees in
Business Bankruptcies Act of 2010
.
(b)The table of contents of this Act is as
follows:
Sec. 1. Short title;
table of contents.
Sec. 2. Findings.
Title I—Improving
Recoveries for Employees and Retirees
Sec. 101. Increased
wage priority.
Sec. 102. Claim for
stock value losses in defined contribution plans.
Sec. 103. Priority
for severance pay.
Sec. 104. Financial
returns for employees and retirees.
Sec. 105. Priority
for WARN Act damages.
Title II—Reducing
Employees’ and Retirees’ Losses
Sec. 201. Rejection
of collective bargaining agreements.
Sec. 202. Payment of
insurance benefits to retired employees.
Sec. 203. Protection
of employee benefits in a sale of assets.
Sec. 204. Claim for
pension losses.
Sec. 205. Payments by
secured lender.
Sec. 206. Preservation of jobs and benefits.
Sec. 207. Termination
of exclusivity.
Title III—Restricting
Executive Compensation Programs
Sec. 301. Executive
compensation upon exit from bankruptcy.
Sec. 302. Limitations
on executive compensation enhancements.
Sec. 303. Assumption
of executive benefit plans.
Sec. 304. Recovery of
executive compensation.
Sec. 305. Preferential compensation transfer.
Title IV—Other
Provisions
Sec. 401. Union proof
of claim.
Sec. 402. Exception
from automatic stay.
2.The Congress finds the following:
(1)Business bankruptcies have increased
sharply over the past year and remain at high levels. These bankruptcies
include several of the largest business bankruptcy filings in history. As the
use of bankruptcy has expanded, job preservation and retirement security are
placed at greater risk.
(2)Laws enacted to improve recoveries for
employees and retirees and limit their losses in bankruptcy cases have not kept
pace with the increasing and broader use of bankruptcy by businesses in all
sectors of the economy. However, while protections for employees and retirees
in bankruptcy cases have eroded, management compensation plans devised for
those in charge of troubled businesses have become more prevalent and are
escaping adequate scrutiny.
(3)Changes in the law regarding these matters
are urgently needed as bankruptcy is used to address increasingly more complex
and diverse conditions affecting troubled businesses and industries.
<enum>I</enum><header display-inline="yes-display-inline">Improving Recoveries for Employees and
Retirees </header>
<section commented="no" display-inline="no-display-inline" id="HB513F1AAE2B244739AFB332ED3B5FEA9" section-type="subsequent-section"><enum>101.</enum><header display-inline="yes-display-inline">Increased wage priority</header><text display-inline="no-display-inline">Section 507(a) of title 11, United States
Code, is amended—</text>
<paragraph commented="no" display-inline="no-display-inline" id="H358D181B4A6A43588BE622A6F271AAC8"><enum>(1)</enum><text display-inline="yes-display-inline">in paragraph (4)—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="H00A87E97D5184EE3B744C9417041AE22"><enum>(A)</enum><text display-inline="yes-display-inline">by striking <quote>$10,000</quote> and
inserting <quote>$20,000</quote>;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HFDEEA435308643A5AE3D58F907536B12"><enum>(B)</enum><text display-inline="yes-display-inline">by striking <quote>within 180 days</quote>;
and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HD944E2194C064F88A46734F641D87280"><enum>(C)</enum><text display-inline="yes-display-inline">by striking <quote>or the date of the
cessation of the debtor’s business, whichever occurs first,</quote>;</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H3C7D372D4EDF4E02B6F8F0F59E65A908"><enum>(2)</enum><text display-inline="yes-display-inline">in paragraph (5)(A), by striking—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="HE0E8FB721C8D409EB6AA9F9D970B661C"><enum>(A)</enum><text display-inline="yes-display-inline"><quote>within 180 days</quote>; and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HCF72A7F4749642D582BA94DA518BB334"><enum>(B)</enum><text display-inline="yes-display-inline"><quote>or the date of the cessation of the
debtor’s business, whichever occurs first</quote>; and</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="HA64B350D753D45E1B906000C192A3F65"><enum>(3)</enum><text display-inline="yes-display-inline">in paragraph (5), by striking subparagraph
(B) and inserting the following:</text>
<quoted-block display-inline="no-display-inline" id="H6092F451F8804B8FABBB6E4BDE4F3F99" style="OLC">
<subparagraph commented="no" display-inline="no-display-inline" id="HE4A66107D2FD49F3BDD966F51098CDCD"><enum>(B)</enum><text display-inline="yes-display-inline">for each such plan, to the extent of the
number of employees covered by each such plan, multiplied by
$20,000.</text>
</subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></section><section commented="no" display-inline="no-display-inline" id="H50500FDD7B7D424695F118F5D1BDDA74" section-type="subsequent-section"><enum>102.</enum><header display-inline="yes-display-inline">Claim for stock value losses in defined
contribution plans</header><text display-inline="no-display-inline">Section
101(5) of title 11, United States Code, is amended—</text>
<paragraph commented="no" display-inline="no-display-inline" id="H877ADDF89EBE4981954D215F7356477F"><enum>(1)</enum><text display-inline="yes-display-inline">in subparagraph (A), by striking
<quote>or</quote> at the end;</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HD484C4D9707B4F479D90A973DA6F96C6"><enum>(2)</enum><text display-inline="yes-display-inline">in subparagraph (B), by inserting
<quote>or</quote> after the semicolon; and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HCCA0E030ABD74694B9430F09B52F630B"><enum>(3)</enum><text display-inline="yes-display-inline">by adding at the end the following:</text>
<quoted-block display-inline="no-display-inline" id="HF3145BB5F63B4196AB295E924121DB94" style="OLC">
<subparagraph commented="no" display-inline="no-display-inline" id="H56FC65C3F5474A218CA7D5E81786F3D8"><enum>(C)</enum><text display-inline="yes-display-inline">right or interest in equity securities of
the debtor, or an affiliate of the debtor, held in a defined contribution plan
(within the meaning of section 3(34) of the Employee Retirement Income Security
Act of 1974 (29 U.S.C. 1002(34))) for the benefit of an individual who is not
an insider, a senior executive officer, or any of the 20 next most highly
compensated employees of the debtor (if 1 or more are not insiders), if such
securities were attributable to either employer contributions by the debtor or
an affiliate of the debtor, or elective deferrals (within the meaning of
section 402(g) of the Internal Revenue Code of 1986), and any earnings thereon,
if an employer or plan sponsor who has commenced a case under this title has
committed fraud with respect to such plan or has otherwise breached a duty to
the participant that has proximately caused the loss of
value.</text>
</subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></section><section commented="no" display-inline="no-display-inline" id="H03C6614E8C9A40E8AA42A4C348254CF3" section-type="subsequent-section"><enum>103.</enum><header display-inline="yes-display-inline">Priority for severance pay</header><text display-inline="no-display-inline">Section 503(b) of title 11, United States
Code, is amended—</text>
<paragraph commented="no" display-inline="no-display-inline" id="HD8E6A7C68B3E49FC97F88AFF1B1CFD66"><enum>(1)</enum><text display-inline="yes-display-inline">in paragraph (8), by striking
<quote>and</quote> at the end;</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H9AC0F547C6C1401481770EEE27E9A7DB"><enum>(2)</enum><text display-inline="yes-display-inline">in paragraph (9), by striking the period
and inserting <quote>; and</quote>; and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H7232DB45E7A94AD6B30CF105E9B6DC11"><enum>(3)</enum><text display-inline="yes-display-inline">by adding at the end the following:</text>
<quoted-block display-inline="no-display-inline" id="H849189B7531D4A83BE4399577201E655" style="OLC">
<paragraph commented="no" display-inline="no-display-inline" id="H38F4911E28294F3383DBAB3AA65EDE30"><enum>(10)</enum><text display-inline="yes-display-inline">severance pay owed to employees of the
debtor (other than to an insider, other senior management, or a consultant
retained to provide services to the debtor), under a plan, program, or policy
generally applicable to employees of the debtor (but not under an individual
contract of employment), or owed pursuant to a collective bargaining agreement,
for layoff or termination on or after the date of the filing of the petition,
which pay shall be deemed earned in full upon such layoff or termination of
employment.</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></section><section commented="no" display-inline="no-display-inline" id="H69FB8BF4A85D4DEC9389053C2901D21F" section-type="subsequent-section"><enum>104.</enum><header display-inline="yes-display-inline">Financial returns for employees and
retirees</header><text display-inline="no-display-inline">Section 1129(a) of
title 11, United States Code is amended—</text>
<paragraph commented="no" display-inline="no-display-inline" id="HD9403E15641F42608B222236D8A2229B"><enum>(1)</enum><text display-inline="yes-display-inline">by adding at the end the following:</text>
<quoted-block display-inline="no-display-inline" id="H9A850DE2667D4DDC9F40AC34B8A36363" style="OLC">
<paragraph commented="no" display-inline="no-display-inline" id="H9DC7F998150D451997E4FBC684B15494"><enum>(17)</enum><text display-inline="yes-display-inline">The plan provides for recovery of damages
payable for the rejection of a collective bargaining agreement, or for other
financial returns as negotiated by the debtor and the authorized representative
under section 1113 (to the extent that such returns are paid under, rather than
outside of, a plan).</text>
</paragraph><after-quoted-block>;
and</after-quoted-block></quoted-block>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HA77D1B73217B40D6B3599CCE92D42743"><enum>(2)</enum><text display-inline="yes-display-inline">by striking paragraph (13) and inserting
the following:</text>
<quoted-block display-inline="no-display-inline" id="HFC3D391E5ACD4279B9E6B8A3D5C21FA8" style="OLC">
<paragraph commented="no" display-inline="no-display-inline" id="H5603BAF9818C41BA853A941123DA9DCE"><enum>(13)</enum><text display-inline="yes-display-inline">With respect to retiree benefits, as that
term is defined in section 1114(a), the plan—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="HE97E8A6D6A5A4382903B93C6B0007F2E"><enum>(A)</enum><text display-inline="yes-display-inline">provides for the continuation after its
effective date of payment of all retiree benefits at the level established
pursuant to subsection (e)(1)(B) or (g) of section 1114 at any time before the
date of confirmation of the plan, for the duration of the period for which the
debtor has obligated itself to provide such benefits, or if no modifications
are made before confirmation of the plan, the continuation of all such retiree
benefits maintained or established in whole or in part by the debtor before the
date of the filing of the petition; and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H9A96E2481FF949129DEFFCC070B16BAE"><enum>(B)</enum><text display-inline="yes-display-inline">provides for recovery of claims arising
from the modification of retiree benefits or for other financial returns, as
negotiated by the debtor and the authorized representative (to the extent that
such returns are paid under, rather than outside of, a
plan).</text>
</subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></section><section commented="no" display-inline="no-display-inline" id="H107B677F0B784001B9D1A7BED48AACDF" section-type="subsequent-section"><enum>105.</enum><header display-inline="yes-display-inline">Priority for WARN Act damages</header><text display-inline="no-display-inline">Section 503(b)(1)(A)(ii) of title 11, United
States Code is amended to read as follows:</text>
<quoted-block display-inline="no-display-inline" id="HE68617AC896C4FBF91F1227A4CCD35F6" style="OLC">
<clause commented="no" display-inline="no-display-inline" id="H11A3374BFC854352B1B2BD07BF773E8F"><enum>(ii)</enum><text display-inline="yes-display-inline">wages and benefits awarded pursuant to a
judicial proceeding or a proceeding of the National Labor Relations Board as
back pay or damages attributable to any period of time occurring after the date
of commencement of the case under this title, as a result of a violation of
Federal or State law by the debtor, without regard to the time of the
occurrence of unlawful conduct on which the award is based or to whether any
services were rendered on or after the commencement of the case, including an
award by a court under section 2901 of title 29, United States Code, of up to
60 days’ pay and benefits following a layoff that occurred or commenced at a
time when such award period includes a period on or after the commencement of
the case, if the court determines that payment of wages and benefits by reason
of the operation of this clause will not substantially increase the probability
of layoff or termination of current employees or of nonpayment of domestic
support obligations during the case under this
title.</text>
</clause><after-quoted-block>.</after-quoted-block></quoted-block>
</section><enum>II</enum><header display-inline="yes-display-inline">Reducing Employees’ and Retirees’
Losses</header>
<section commented="no" display-inline="no-display-inline" id="H5D0F9F5FEDFB4050AB89705DFE689AC4" section-type="subsequent-section"><enum>201.</enum><header display-inline="yes-display-inline">Rejection of collective bargaining
agreements</header><text display-inline="no-display-inline">Section 1113 of
title 11, United States Code, is amended by striking subsections (a) through
(f) and inserting the following:</text>
<quoted-block display-inline="no-display-inline" id="H3CCE3E30EAB6403C884B7ED9F3FCE182" style="OLC">
<subsection commented="no" display-inline="no-display-inline" id="H5163F5F377604D1D99364D37F8ED2678"><enum>(a)</enum><text display-inline="yes-display-inline">The debtor in possession, or the trustee if
one has been appointed under this chapter, other than a trustee in a case
covered by subchapter IV of this chapter and by title I of the Railway Labor
Act, may reject a collective bargaining agreement only in accordance with this
section. Hereinafter in this section, a reference to the trustee includes a
reference to the debtor in possession.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="HE42772EA7FAC409A81713C665B4BDF07"><enum>(b)</enum><text display-inline="yes-display-inline">No provision of this title shall be
construed to permit the trustee to unilaterally terminate or alter any
provision of a collective bargaining agreement before complying with this
section. The trustee shall timely pay all monetary obligations arising under
the terms of the collective bargaining agreement. Any such payment required to
be made before a plan confirmed under section 1129 is effective has the status
of an allowed administrative expense under section 503.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="H2FEC48F6E5604D3DBAF2ECDE3363A546"><enum>(c)</enum><paragraph commented="no" display-inline="yes-display-inline" id="HA92AC8C846DA4337A3FDFA1DBE4272FF"><enum>(1)</enum><text display-inline="yes-display-inline">If the trustee seeks modification of a
collective bargaining agreement, then the trustee shall provide notice to the
labor organization representing the employees covered by the agreement that
modifications are being proposed under this section, and shall promptly provide
an initial proposal for modifications to the agreement. Thereafter, the trustee
shall confer in good faith with the labor organization, at reasonable times and
for a reasonable period in light of the complexity of the case, in attempting
to reach mutually acceptable modifications of such agreement.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H107DB9660D9841BC95EBD2CA4D4F253B" indent="up1"><enum>(2)</enum><text display-inline="yes-display-inline">The initial proposal and subsequent
proposals by the trustee for modification of a collective bargaining agreement
shall be based upon a business plan for the reorganization of the debtor, and
shall reflect the most complete and reliable information available. The trustee
shall provide to the labor organization all information that is relevant for
negotiations. The court may enter a protective order to prevent the disclosure
of information if disclosure could compromise the debtor’s position with
respect to its competitors in the industry, subject to the needs of the labor
organization to evaluate the trustee’s proposals and any application for
rejection of the agreement or for interim relief pursuant to this
section.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H772161CB5A4D45DF9BBD745A347694B6" indent="up1"><enum>(3)</enum><text display-inline="yes-display-inline">In consideration of Federal policy
encouraging the practice and process of collective bargaining and in
recognition of the bargained-for expectations of the employees covered by the
agreement, modifications proposed by the trustee—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="H0FC46C0E703C43FF8A8D76F85CFC69C4"><enum>(A)</enum><text display-inline="yes-display-inline">shall be proposed only as part of a program
of workforce and nonworkforce cost savings devised for the reorganization of
the debtor, including savings in management personnel costs;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HC2F6B56B787146FEAF10E2109A493B23"><enum>(B)</enum><text display-inline="yes-display-inline">shall be limited to modifications designed
to achieve a specified aggregate financial contribution for the employees
covered by the agreement (taking into consideration any labor cost savings
negotiated within the 12-month period before the filing of the petition), and
shall be not more than the minimum savings essential to permit the debtor to
exit bankruptcy, such that confirmation of a plan of reorganization is not
likely to be followed by the liquidation, or the need for further financial
reorganization, of the debtor (or any successor to the debtor) in the short
term; and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H9A85AB8D85554C9ABF77B2EDC565D910"><enum>(C)</enum><text display-inline="yes-display-inline">shall not be disproportionate or overly
burden the employees covered by the agreement, either in the amount of the cost
savings sought from such employees or the nature of the modifications.</text>
</subparagraph></paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="H25AE5E9B2DDC438BBBBC9AD8AA3EC53B"><enum>(d)</enum><paragraph commented="no" display-inline="yes-display-inline" id="H057C02ACA84B4B9FBBBEA9509FC681C4"><enum>(1)</enum><text display-inline="yes-display-inline">If, after a period of negotiations, the
trustee and the labor organization have not reached an agreement over mutually
satisfactory modifications, and further negotiations are not likely to produce
mutually satisfactory modifications, the trustee may file a motion seeking
rejection of the collective bargaining agreement after notice and a hearing.
Absent agreement of the parties, no such hearing shall be held before the
expiration of the 21-day period beginning on the date on which notice of the
hearing is provided to the labor organization representing the employees
covered by the agreement. Only the debtor and the labor organization may appear
and be heard at such hearing. An application for rejection shall seek rejection
effective upon the entry of an order granting the relief.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H7F5BB08286DE4E36A222DAE46642DB7F" indent="up1"><enum>(2)</enum><text display-inline="yes-display-inline">In consideration of Federal policy
encouraging the practice and process of collective bargaining and in
recognition of the bargained-for expectations of the employees covered by the
agreement, the court may grant a motion seeking rejection of a collective
bargaining agreement only if, based on clear and convincing evidence—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="HE9D68D2D946A4F3EBB95F0C4AA30BA82"><enum>(A)</enum><text display-inline="yes-display-inline">the court finds that the trustee has
complied with the requirements of subsection (c);</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H87D2BE9AFD584E6B895BB8339E59D8AB"><enum>(B)</enum><text display-inline="yes-display-inline">the court has considered alternative
proposals by the labor organization and has concluded that such proposals do
not meet the requirements of paragraph (3)(B) of subsection (c);</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H2A4A70C9A556478B962551B60FF4DDC8"><enum>(C)</enum><text display-inline="yes-display-inline">the court finds that further negotiations
regarding the trustee’s proposal or an alternative proposal by the labor
organization are not likely to produce an agreement;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H77AC8FC62DBD4DDFA80924A53C953D61"><enum>(D)</enum><text display-inline="yes-display-inline">the court finds that implementation of the
trustee’s proposal shall not—</text>
<clause commented="no" display-inline="no-display-inline" id="HC894C70F11AD444F84778ABB91A16B3F"><enum>(i)</enum><text display-inline="yes-display-inline">cause a material diminution in the
purchasing power of the employees covered by the agreement;</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H9041838FC221423DAE69C8368A96FD4B"><enum>(ii)</enum><text display-inline="yes-display-inline">adversely affect the ability of the debtor
to retain an experienced and qualified workforce; or</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H33D1A32B525146DEA7F5C9AC2035B0EC"><enum>(iii)</enum><text display-inline="yes-display-inline">impair the debtor’s labor relations such
that the ability to achieve a feasible reorganization would be compromised;
and</text>
</clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H9146CA86CFFB4CEA8FE976786D363856"><enum>(E)</enum><text display-inline="yes-display-inline">the court concludes that rejection of the
agreement and immediate implementation of the trustee’s proposal is essential
to permit the debtor to exit bankruptcy, such that confirmation of a plan of
reorganization is not likely to be followed by liquidation, or the need for
further financial reorganization, of the debtor (or any successor to the
debtor) in the short term.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="HDD90359AF87A4F43A2E8905D3C0FD0E2" indent="up1"><enum>(3)</enum><text display-inline="yes-display-inline">If the trustee has implemented a program of
incentive pay, bonuses, or other financial returns for insiders, senior
executive officers, or the 20 next most highly compensated employees or
consultants providing services to the debtor during the bankruptcy, or such a
program was implemented within 180 days before the date of the filing of the
petition, the court shall presume that the trustee has failed to satisfy the
requirements of subsection (c)(3)(C).</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HBFC0A3F9F71E4A32BADDF41491D3B2A9" indent="up1"><enum>(4)</enum><text display-inline="yes-display-inline">In no case shall the court enter an order
rejecting a collective bargaining agreement that would result in modifications
to a level lower than the level proposed by the trustee in the proposal found
by the court to have complied with the requirements of this section.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HD0F1D694303A47568E008B88078CF84F" indent="up1"><enum>(5)</enum><text display-inline="yes-display-inline">At any time after the date on which an
order rejecting a collective bargaining agreement is entered, or in the case of
an agreement entered into between the trustee and the labor organization
providing mutually satisfactory modifications, at any time after such agreement
has been entered into, the labor organization may apply to the court for an
order seeking an increase in the level of wages or benefits, or relief from
working conditions, based upon changed circumstances. The court shall grant the
request only if the increase or other relief is not inconsistent with the
standard set forth in paragraph (2)(E).</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="H21FAD4CFC1524ADEA0BA8BF0C2BDCEBD"><enum>(e)</enum><text display-inline="yes-display-inline">During a period in which a collective
bargaining agreement at issue under this section continues in effect, and if
essential to the continuation of the debtor’s business or in order to avoid
irreparable damage to the estate, the court, after notice and a hearing, may
authorize the trustee to implement interim changes in the terms, conditions,
wages, benefits, or work rules provided by the collective bargaining agreement.
Any hearing under this subsection shall be scheduled in accordance with the
needs of the trustee. The implementation of such interim changes shall not
render the application for rejection moot.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="H53335578ACEF41088E90FFB6B6534B61"><enum>(f)</enum><text display-inline="yes-display-inline">Rejection of a collective bargaining
agreement constitutes a breach of the agreement, and shall be effective no
earlier than the entry of an order granting such relief. Notwithstanding the
foregoing, solely for purposes of determining and allowing a claim arising from
the rejection of a collective bargaining agreement, rejection shall be treated
as rejection of an executory contract under section 365(g) and shall be allowed
or disallowed in accordance with section 502(g)(1). No claim for rejection
damages shall be limited by section 502(b)(7). Economic self-help by a labor
organization shall be permitted upon a court order granting a motion to reject
a collective bargaining agreement under subsection (d) or pursuant to
subsection (e), and no provision of this title or of any other provision of
Federal or State law may be construed to the contrary.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="HC544491500D547608A2AA17E7EEEBC20"><enum>(g)</enum><text display-inline="yes-display-inline">The trustee shall provide for the
reasonable fees and costs incurred by a labor organization under this section,
upon request and after notice and a hearing.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="H08374DF3E52A4ED1BB91BAE3416AB186"><enum>(h)</enum><text display-inline="yes-display-inline">A collective bargaining agreement that is
assumed shall be assumed in accordance with section
365.</text>
</subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</section><section commented="no" display-inline="no-display-inline" id="H0D757F62D96D48B48B0426AD7580E001" section-type="subsequent-section"><enum>202.</enum><header display-inline="yes-display-inline">Payment of insurance benefits to retired
employees</header><text display-inline="no-display-inline">Section 1114 of
title 11, United States Code, is amended—</text>
<paragraph commented="no" display-inline="no-display-inline" id="H9C03A635D930499ABEBD43131AD72D4E"><enum>(1)</enum><text display-inline="yes-display-inline">in subsection (a), by inserting <quote>,
whether or not the debtor asserts a right to unilaterally modify such payments
under such plan, fund, or program</quote> before the period at the end;</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HBDBF183B36B24B3CA783BA36DA0B43B5"><enum>(2)</enum><text display-inline="yes-display-inline">in subsection (b)(2), by inserting after
<quote>section</quote> the following: <quote>, and a labor organization serving
as the authorized representative under subsection (c)(1),</quote>;</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HCE82D3BAF4434C4C987EFF175E733EBE"><enum>(3)</enum><text display-inline="yes-display-inline">in subsection (f), by striking
<quote>(f)</quote> and all that follows through paragraph (2) and inserting the
following:</text>
<quoted-block display-inline="no-display-inline" id="H15136C2FB42C483391ECFD9BBF384B94" style="OLC">
<subsection commented="no" display-inline="no-display-inline" id="H58618122962844A8915C870325241B73"><enum>(f)</enum><paragraph commented="no" display-inline="yes-display-inline" id="H1A05483788D54940BF2D1D31CCF5D9AB"><enum>(1)</enum><text display-inline="yes-display-inline">If a trustee seeks modification of retiree
benefits, then the trustee shall provide a notice to the authorized
representative that modifications are being proposed pursuant to this section,
and shall promptly provide an initial proposal. Thereafter, the trustee shall
confer in good faith with the authorized representative at reasonable times and
for a reasonable period in light of the complexity of the case in attempting to
reach mutually satisfactory modifications.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H2185EFDEDFB8478099113933FECCF173" indent="up1"><enum>(2)</enum><text display-inline="yes-display-inline">The initial proposal and subsequent
proposals by the trustee shall be based upon a business plan for the
reorganization of the debtor and shall reflect the most complete and reliable
information available. The trustee shall provide to the authorized
representative all information that is relevant for the negotiations. The court
may enter a protective order to prevent the disclosure of information if
disclosure could compromise the debtor’s position with respect to its
competitors in the industry, subject to the needs of the authorized
representative to evaluate the trustee’s proposals and an application pursuant
to subsection (g) or (h).</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HC7AECC9953C340178C9C16BC75C57E0C" indent="up1"><enum>(3)</enum><text display-inline="yes-display-inline">Modifications proposed by the
trustee—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="HD500D6159A8646A496AB17A1D0204C3C"><enum>(A)</enum><text display-inline="yes-display-inline">shall be proposed only as part of a program
of workforce and nonworkforce cost savings devised for the reorganization of
the debtor, including savings in management personnel costs;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H03E14968A7704A1FB06B0C11B1CA51D4"><enum>(B)</enum><text display-inline="yes-display-inline">shall be limited to modifications that are
designed to achieve a specified aggregate financial contribution for the
retiree group represented by the authorized representative (taking into
consideration any cost savings implemented within the 12-month period before
the date of filing of the petition with respect to the retiree group), and
shall be no more than the minimum savings essential to permit the debtor to
exit bankruptcy, such that confirmation of a plan of reorganization is not
likely to be followed by the liquidation, or the need for further financial
reorganization, of the debtor (or any successor to the debtor) in the short
term; and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H0128C0322F564FCDB13570DB840A90F8"><enum>(C)</enum><text display-inline="yes-display-inline">shall not be disproportionate or overly
burden the retiree group, either in the amount of the cost savings sought from
such group or the nature of the
modifications.</text>
</subparagraph></paragraph></subsection><after-quoted-block>;</after-quoted-block></quoted-block>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H6DF4E35E23294EE79675BDCB1067750D"><enum>(4)</enum><text display-inline="yes-display-inline">in subsection (g)—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="H55FB01836A7C475FB000B152E43CBE54"><enum>(A)</enum><text display-inline="yes-display-inline">by striking <quote>(g)</quote> and all that
follows through the semicolon at the end of paragraph (3) and inserting the
following:</text>
<quoted-block display-inline="no-display-inline" id="H2AEDF6FE36B94FFFB770146AEDFDEB48" style="OLC">
<subsection commented="no" display-inline="no-display-inline" id="HEA9764A538B34CAEBF9DC2234223C421"><enum>(g)</enum><paragraph commented="no" display-inline="yes-display-inline" id="HDA40A27707E744CB83512F66A5AD24C1"><enum>(1)</enum><text display-inline="yes-display-inline">If, after a period of negotiations, the
trustee and the authorized representative have not reached agreement over
mutually satisfactory modifications and further negotiations are not likely to
produce mutually satisfactory modifications, then the trustee may file a motion
seeking modifications in the payment of retiree benefits after notice and a
hearing. Absent agreement of the parties, no such hearing shall be held before
the expiration of the 21-day period beginning on the date on which notice of
the hearing is provided to the authorized representative. Only the debtor and
the authorized representative may appear and be heard at such hearing.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H41F6566D869049CAAC2D2DEDAAF8BDD1" indent="up1"><enum>(2)</enum><text display-inline="yes-display-inline">The court may grant a motion to modify the
payment of retiree benefits only if, based on clear and convincing
evidence—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="H19C10E7352504CD686BAA7FDB062EB9A"><enum>(A)</enum><text display-inline="yes-display-inline">the court finds that the trustee has
complied with the requirements of subsection (f);</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H340D73251B04434C92CD91F053F1DB3E"><enum>(B)</enum><text display-inline="yes-display-inline">the court has considered alternative
proposals by the authorized representative and has determined that such
proposals do not meet the requirements of subsection (f)(3)(B);</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HF77021A9F99C44F0A4024DC066E60E11"><enum>(C)</enum><text display-inline="yes-display-inline">the court finds that further negotiations
regarding the trustee’s proposal or an alternative proposal by the authorized
representative are not likely to produce a mutually satisfactory
agreement;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HDB1B323FC4FA40BA957BB9BEDC5D0B15"><enum>(D)</enum><text display-inline="yes-display-inline">the court finds that implementation of the
proposal shall not cause irreparable harm to the affected retirees; and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HCE3603D6A40B47D4B309DD84C1F7CB9A"><enum>(E)</enum><text display-inline="yes-display-inline">the court concludes that an order granting
the motion and immediate implementation of the trustee’s proposal is essential
to permit the debtor to exit bankruptcy, such that confirmation of a plan of
reorganization is not likely to be followed by liquidation, or the need for
further financial reorganization, of the debtor (or a successor to the debtor)
in the short term.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H11DF443E12504D5BB34CBBEC45FD2D8A" indent="up1"><enum>(3)</enum><text display-inline="yes-display-inline">If a trustee has implemented a program of
incentive pay, bonuses, or other financial returns for insiders, senior
executive officers, or the 20 next most highly-compensated employees or
consultants providing services to the debtor during the bankruptcy, or such a
program was implemented within 180 days before the date of the filing of the
petition, the court shall presume that the trustee has failed to satisfy the
requirements of subparagraph (f)(3)(C).</text>
</paragraph></subsection><after-quoted-block>;
and</after-quoted-block></quoted-block>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H6C93F7D9B65949ABBB72523B31A14488"><enum>(B)</enum><text display-inline="yes-display-inline">by striking “except that in no case” and
inserting the following:</text>
<quoted-block display-inline="no-display-inline" id="H036965111CB441F58A1C816488E67800" style="OLC">
<paragraph commented="no" display-inline="no-display-inline" id="H82F8C6D39B544162B94AD9A9982F2929" indent="up1"><enum>(4)</enum><text display-inline="yes-display-inline">In no
case</text>
</paragraph><after-quoted-block>;
and</after-quoted-block></quoted-block>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H0029500726904BD99175454B289F0F77"><enum>(5)</enum><text display-inline="yes-display-inline">by striking subsection (k) and
redesignating subsections (l) and (m) as subsections (k) and (l),
respectively.</text>
</paragraph></section><section commented="no" display-inline="no-display-inline" id="H58612B7307864379B0F824182D862C50" section-type="subsequent-section"><enum>203.</enum><header display-inline="yes-display-inline">Protection of employee benefits in a sale
of assets</header><text display-inline="no-display-inline">Section 363(b) of
title 11, United States Code, is amended by adding at the end the
following:</text>
<quoted-block display-inline="no-display-inline" id="HED8BCB1C35EB4AB1A0728502A1780C1C" style="OLC">
<paragraph commented="no" display-inline="no-display-inline" id="H45DA42FB7B1E4F1482FBE54D1EC54C56" indent="up1"><enum>(3)</enum><text display-inline="yes-display-inline">In approving a sale under this subsection,
the court shall consider the extent to which a bidder has offered to maintain
existing jobs, preserve terms and conditions of employment, and assume or match
pension and retiree health benefit obligations in determining whether an offer
constitutes the highest or best offer for such
property.</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</section><section commented="no" display-inline="no-display-inline" id="H8FDE262A7A8842C49DE4AB65906953DC" section-type="subsequent-section"><enum>204.</enum><header display-inline="yes-display-inline">Claim for pension losses</header><text display-inline="no-display-inline">Section 502 of title 11, United States Code,
is amended by adding at the end the following:</text>
<quoted-block display-inline="no-display-inline" id="HDD638376CCB04457920577E1820EF70D" style="OLC">
<subsection commented="no" display-inline="no-display-inline" id="H8E52231DBF824C9489D05F8B11029775"><enum>(l)</enum><text display-inline="yes-display-inline">The court shall allow a claim asserted by
an active or retired participant, or by a labor organization representing such
participants, in a defined benefit plan terminated under section 4041 or 4042
of the Employee Retirement Income Security Act of 1974, for any shortfall in
pension benefits accrued as of the effective date of the termination of such
pension plan as a result of the termination of the plan and limitations upon
the payment of benefits imposed pursuant to section 4022 of such Act,
notwithstanding any claim asserted and collected by the Pension Benefit
Guaranty Corporation with respect to such termination.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="H1709B973ED8F4AF399B6F40D18176332"><enum>(m)</enum><text display-inline="yes-display-inline">The court shall allow a claim of a kind
described in section 101(5)(C) by an active or retired participant in a defined
contribution plan (within the meaning of section 3(34) of the Employee
Retirement Income Security Act of 1974 (29 U.S.C. 1002(34))), or by a labor
organization representing such participants. The amount of such claim shall be
measured by the market value of the stock at the time of contribution to, or
purchase by, the plan and the value as of the commencement of the
case.</text>
</subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</section><section commented="no" display-inline="no-display-inline" id="H8DDE7D8F7ED540CB9E2224B6F26DB46E" section-type="subsequent-section"><enum>205.</enum><header display-inline="yes-display-inline">Payments by secured lender</header><text display-inline="no-display-inline">Section 506(c) of title 11, United States
Code, is amended by adding at the end the following: <quote>If employees have
not received wages, accrued vacation, severance, or other benefits owed under
the policies and practices of the debtor, or pursuant to the terms of a
collective bargaining agreement, for services rendered on and after the date of
the commencement of the case, then such unpaid obligations shall be deemed
necessary costs and expenses of preserving, or disposing of, property securing
an allowed secured claim and shall be recovered even if the trustee has
otherwise waived the provisions of this subsection under an agreement with the
holder of the allowed secured claim or a successor or predecessor in
interest.</quote>.</text>
</section><section commented="no" display-inline="no-display-inline" id="HA3F946CEF0074AEC8750A378936C1884" section-type="subsequent-section"><enum>206.</enum><header display-inline="yes-display-inline">Preservation of jobs and
benefits</header><text display-inline="no-display-inline">Title 11, United
States Code, is amended—</text>
<paragraph commented="no" display-inline="no-display-inline" id="H35B1E97FE38E4941BE32D9BBDDDFB35F"><enum>(1)</enum><text display-inline="yes-display-inline">by inserting before section 1101 the
following:</text>
<quoted-block display-inline="no-display-inline" id="HFCA43FE6DFE84220A68B6273C9E825BF" style="OLC">
<section commented="no" display-inline="no-display-inline" id="H746799C4DDA04D4AA855879289F01767" section-type="subsequent-section"><enum>1100.</enum><header display-inline="yes-display-inline">Statement of purpose</header><text display-inline="no-display-inline">A debtor commencing a case under this
chapter shall have as its principal purpose the reorganization of its business
to preserve going concern value to the maximum extent possible through the
productive use of its assets and the preservation of jobs that will sustain
productive economic
activity.</text>
</section><after-quoted-block>;</after-quoted-block></quoted-block>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H4928CC81CE6D435AB4033015EEFBE330"><enum>(2)</enum><text display-inline="yes-display-inline">in section 1129(a), as amended by section
104, by adding at the end the following:</text>
<quoted-block display-inline="no-display-inline" id="H366A88A91CF04891BABC9BD0A4297042" style="OLC">
<paragraph commented="no" display-inline="no-display-inline" id="H0401F93A2C864CADB23438F6ABACEDE6"><enum>(18)</enum><text display-inline="yes-display-inline">The debtor has demonstrated that the
reorganization preserves going concern value to the maximum extent possible
through the productive use of the debtor’s assets and preserves jobs that
sustain productive economic activity.</text>
</paragraph><after-quoted-block>;
</after-quoted-block></quoted-block>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H4CD3B3B6B9674D09A11251DE77249597"><enum>(3)</enum><text display-inline="yes-display-inline">in section 1129(c), by striking the last
sentence and inserting the following: “If the requirements of subsections (a)
and (b) are met with respect to more than 1 plan, the court shall, in
determining which plan to confirm—</text>
<quoted-block display-inline="no-display-inline" id="H9ECCC3FD695F4E4D9EDBF63DDA71259C" style="OLC">
<paragraph commented="no" display-inline="no-display-inline" id="H572AF89CC44447C69ECCF6B855FEA148"><enum>(1)</enum><text display-inline="yes-display-inline">consider the extent to which each plan
would preserve going concern value through the productive use of the debtor’s
assets and the preservation of jobs that sustain productive economic activity;
and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HF6A4B597169746568E0170B69B9E86B6"><enum>(2)</enum><text display-inline="yes-display-inline">confirm the plan that better serves such
interests.</text>
</paragraph><quoted-block-continuation-text quoted-block-continuation-text-level="subsection">A plan that incorporates the terms
of a settlement with a labor organization representing employees of the debtor
shall presumptively constitute the plan that satisfies this
subsection.</quoted-block-continuation-text><after-quoted-block>;
and</after-quoted-block></quoted-block>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H3428BA2B1649427DAE300EEE757A4BA1"><enum>(4)</enum><text display-inline="yes-display-inline">in the table of sections for chapter 11, by
inserting the following before the item relating to section 1101:</text>
<quoted-block display-inline="no-display-inline" id="HC6661C56CD024848A90BC6A5B50BE459" style="USC">
<toc regeneration="no-regeneration">
<toc-entry bold="off" level="section">1100. Statement of
purpose.</toc-entry>
</toc>
<after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></section><section commented="no" display-inline="no-display-inline" id="H51A109ED32034109ADBF0322564FCABA" section-type="subsequent-section"><enum>207.</enum><header display-inline="yes-display-inline">Termination of exclusivity</header><text display-inline="no-display-inline">Section 1121(d) of title 11, United States
Code, is amended by adding at the end the following:</text>
<quoted-block display-inline="no-display-inline" id="HA5E053E95BC5488DB9F8B9E291A15A42" style="traditional">
<paragraph commented="no" display-inline="no-display-inline" id="H5511A25AC93147DF8F5B48DCC6184959" indent="up1"><enum>(3)</enum><text display-inline="yes-display-inline">For purposes of this subsection, cause for
reducing the 120-day period or the 180-day period includes the
following:</text>
<subparagraph commented="no" display-inline="no-display-inline" id="HD447CEE1126448439BC0C2D05DA7C965"><enum>(A)</enum><text display-inline="yes-display-inline">The filing of a motion pursuant to section
1113 seeking rejection of a collective bargaining agreement if a plan based
upon an alternative proposal by the labor organization is reasonably likely to
be confirmed within a reasonable time.</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HC55BC775BAD34A33B0BF43F0806A9084"><enum>(B)</enum><text display-inline="yes-display-inline">The proposed filing of a plan by a
proponent other than the debtor, which incorporates the terms of a settlement
with a labor organization if such plan is reasonably likely to be confirmed
within a reasonable
time.</text>
</subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</section><enum>III</enum><header display-inline="yes-display-inline">Restricting Executive Compensation
Programs</header>
<section commented="no" display-inline="no-display-inline" id="HCDF730FC3984477F9A7DA3011DD38BF1" section-type="subsequent-section"><enum>301.</enum><header display-inline="yes-display-inline">Executive compensation upon exit from
bankruptcy</header><text display-inline="no-display-inline">Section 1129(a) of
title 11, United States Code, is amended—</text>
<paragraph commented="no" display-inline="no-display-inline" id="H561ED57493E34F0AA4488BBE7565EE70"><enum>(1)</enum><text display-inline="yes-display-inline">in paragraph (4), by adding at the end the
following: “Except for compensation subject to review under paragraph (5),
payments or other distributions under the plan to or for the benefit of
insiders, senior executive officers, and any of the 20 next most highly
compensated employees or consultants providing services to the debtor, shall
not be approved except as part of a program of payments or distributions
generally applicable to employees of the debtor, and only to the extent that
the court determines that such payments are not excessive or disproportionate
compared to distributions to the debtor’s nonmanagement workforce.”; and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H0152AE47B0CD405DA016CF7B99E217AD"><enum>(2)</enum><text display-inline="yes-display-inline">in paragraph (5)—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="H8041145607DB45F38F8F2D7E1DD19699"><enum>(A)</enum><text display-inline="yes-display-inline">in subparagraph (A)(ii), by striking
<quote>and</quote> at the end; and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H407B0312AE8A4F67B4B08C8DA5A349A4"><enum>(B)</enum><text display-inline="yes-display-inline">in subparagraph (B), by striking the period
at the end and inserting the following: “; and</text>
<quoted-block display-inline="no-display-inline" id="HA44462D3CE9047D5AF095DF224D9E792" style="OLC">
<subparagraph commented="no" display-inline="no-display-inline" id="HB0C9EF2A500D4A3599982AB74C54B171"><enum>(C)</enum><text display-inline="yes-display-inline">the compensation disclosed pursuant to
subparagraph (B) has been approved by, or is subject to the approval of, the
court as reasonable when compared to individuals holding comparable positions
at comparable companies in the same industry and not disproportionate in light
of economic concessions by the debtor’s nonmanagement workforce during the
case.</text>
</subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subparagraph></paragraph></section><section commented="no" display-inline="no-display-inline" id="HCA5342F4EEAD4A0FBB5FF52B29BDC210" section-type="subsequent-section"><enum>302.</enum><header display-inline="yes-display-inline">Limitations on executive compensation
enhancements</header><text display-inline="no-display-inline">Section 503(c) of
title 11, United States Code, is amended—</text>
<paragraph commented="no" display-inline="no-display-inline" id="HA54264ABE8B5490995BC42427F057D1A"><enum>(1)</enum><text display-inline="yes-display-inline">in paragraph (1)—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="HB30860F00136482BAA5F73B2EFD3CD1E"><enum>(A)</enum><text display-inline="yes-display-inline">by inserting <quote>, a senior executive
officer, or any of the 20 next most highly compensated employees or
consultants</quote> after <quote>an insider</quote>;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H751615EA71274B9CBA9BFA6CB0F6C7BB"><enum>(B)</enum><text display-inline="yes-display-inline">by inserting <quote>or for the payment of
performance or incentive compensation, or a bonus of any kind, or other
financial returns designed to replace or enhance incentive, stock, or other
compensation in effect before the date of the commencement of the case,</quote>
after <quote>remain with the debtor’s business,</quote>; and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H0AB618B5F4EA4753A03C13F364F3F5D4"><enum>(C)</enum><text display-inline="yes-display-inline">by inserting “clear and convincing” before
“evidence in the record”; and</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="HD742EB13606E45DF80307FBB60CCCFB3"><enum>(2)</enum><text display-inline="yes-display-inline">by amending paragraph (3) to read as
follows:</text>
<quoted-block display-inline="no-display-inline" id="HA300CDD4D05142EA89A55574235F3F08" style="OLC">
<paragraph commented="no" display-inline="no-display-inline" id="H05B9D355AF864F52A2B4B756254400AD"><enum>(3)</enum><text display-inline="yes-display-inline">other transfers or obligations, to or for
the benefit of insiders, senior executive officers, managers, or consultants
providing services to the debtor, in the absence of a finding by the court,
based upon clear and convincing evidence, and without deference to the debtor’s
request for such payments, that such transfers or obligations are essential to
the survival of the debtor’s business or (in the case of a liquidation of some
or all of the debtor’s assets) essential to the orderly liquidation and
maximization of value of the assets of the debtor, in either case, because of
the essential nature of the services provided, and then only to the extent that
the court finds such transfers or obligations are reasonable compared to
individuals holding comparable positions at comparable companies in the same
industry and not disproportionate in light of economic concessions by the
debtor’s nonmanagement workforce during the
case.</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></section><section commented="no" display-inline="no-display-inline" id="H87A8A122C89545C6BB082AC715FF8987" section-type="subsequent-section"><enum>303.</enum><header display-inline="yes-display-inline">Assumption of executive benefit
plans</header><text display-inline="no-display-inline">Section 365 of title 11,
United States Code, is amended—</text>
<paragraph commented="no" display-inline="no-display-inline" id="H10B0C685A76C48E68DFE691C2DED1416"><enum>(1)</enum><text display-inline="yes-display-inline">in subsection (a), by striking <quote>and
(d)</quote> and inserting <quote>(d), (q), and (r)</quote>; and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H51CDF63F1CBF4E65ADC3A58D2C8C6280"><enum>(2)</enum><text display-inline="yes-display-inline">by adding at the end the following:</text>
<quoted-block display-inline="no-display-inline" id="H953D6A5F63D142A783E99527A5D7566E" style="OLC">
<subsection commented="no" display-inline="no-display-inline" id="H31F7FD86D46B468FBE2FCCB2FFE2FC39"><enum>(q)</enum><text display-inline="yes-display-inline">No deferred compensation arrangement for
the benefit of insiders, senior executive officers, or any of the 20 next most
highly compensated employees of the debtor shall be assumed if a defined
benefit plan for employees of the debtor has been terminated pursuant to
section 4041 or 4042 of the Employee Retirement Income Security Act of 1974, on
or after the date of the commencement of the case or within 180 days before the
date of the commencement of the case.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="HDB5B9D3B4A6D447BB17E35F7143AF808"><enum>(r)</enum><text display-inline="yes-display-inline">No plan, fund, program, or contract to
provide retiree benefits for insiders, senior executive officers, or any of the
20 next most highly compensated employees of the debtor shall be assumed if the
debtor has obtained relief under subsection (g) or (h) of section 1114 to
impose reductions in retiree benefits or under subsection (d) or (e) of section
1113 to impose reductions in the health benefits of active employees of the
debtor, or reduced or eliminated health benefits for active or retired
employees within 180 days before the date of the commencement of the
case.</text>
</subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></section><section commented="no" display-inline="no-display-inline" id="HBAE9C4D216E94EBEA8F9EAEC1605C79C" section-type="subsequent-section"><enum>304.</enum><header display-inline="yes-display-inline">Recovery of executive
compensation</header><text display-inline="no-display-inline">Title 11, United
States Code, is amended by inserting after section 562 the following:</text>
<quoted-block display-inline="no-display-inline" id="HD56982FD608B4D02A6DEA4CD4095E66E" style="OLC">
<section commented="no" display-inline="no-display-inline" id="H2E24BD1362614F3EBA4EF2B34529882D" section-type="subsequent-section"><enum>563.</enum><header display-inline="yes-display-inline">Recovery of executive compensation</header>
<subsection commented="no" display-inline="no-display-inline" id="HC7EB90A764C744C2831682F0BAACD911"><enum>(a)</enum><text display-inline="yes-display-inline">If a debtor has obtained relief under
subsection (d) of section 1113, or subsection (g) of section 1114, by which the
debtor reduces the cost of its obligations under a collective bargaining
agreement or a plan, fund, or program for retiree benefits as defined in
section 1114(a), the court, in granting relief, shall determine the percentage
diminution in the value of the obligations when compared to the debtor’s
obligations under the collective bargaining agreement, or with respect to
retiree benefits, as of the date of the commencement of the case under this
title before granting such relief. In making its determination, the court shall
include reductions in benefits, if any, as a result of the termination pursuant
to section 4041 or 4042 of the Employee Retirement Income Security Act of 1974,
of a defined benefit plan administered by the debtor, or for which the debtor
is a contributing employer, effective at any time on or after 180 days before
the date of the commencement of a case under this title. The court shall not
take into account pension benefits paid or payable under of such Act as a
result of any such termination.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="HEC3E19E4850B48EABB54A11A1EAD9739"><enum>(b)</enum><text display-inline="yes-display-inline">If a defined benefit pension plan
administered by the debtor, or for which the debtor is a contributing employer,
has been terminated pursuant to section 4041 or 4042 of the Employee Retirement
Income Security Act of 1974, effective at any time on or after 180 days before
the date of the commencement of a case under this title, but a debtor has not
obtained relief under subsection (d) of section 1113, or subsection (g) of
section 1114, then the court, upon motion of a party in interest, shall
determine the percentage diminution in the value of benefit obligations when
compared to the total benefit liabilities before such termination. The court
shall not take into account pension benefits paid or payable under title IV of
the Employee Retirement Income Security Act of 1974 as a result of any such
termination.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="H14D779F6C13948E3AC7FA13792F91EDF"><enum>(c)</enum><text display-inline="yes-display-inline">Upon the determination of the percentage
diminution in value under subsection (a) or (b), the estate shall have a claim
for the return of the same percentage of the compensation paid, directly or
indirectly (including any transfer to a self-settled trust or similar device,
or to a nonqualified deferred compensation plan under section 409A(d)(1) of the
Internal Revenue Code of 1986) to any officer of the debtor serving as member
of the board of directors of the debtor within the year before the date of the
commencement of the case, and any individual serving as chairman or lead
director of the board of directors at the time of the granting of relief under
section 1113 or 1114 or, if no such relief has been granted, the termination of
the defined benefit plan.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="HFF0C7775E5454B48B04545C160137835"><enum>(d)</enum><text display-inline="yes-display-inline">The trustee or a committee appointed
pursuant to section 1102 may commence an action to recover such claims, except
that if neither the trustee nor such committee commences an action to recover
such claim by the first date set for the hearing on the confirmation of plan
under section 1129, any party in interest may apply to the court for authority
to recover such claim for the benefit of the estate. The costs of recovery
shall be borne by the estate.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="H8FEB184F068A4B909A68641F89B09A7B"><enum>(e)</enum><text display-inline="yes-display-inline">The court shall not award postpetition
compensation under section 503(c) or otherwise to any person subject to
subsection (c) if there is a reasonable likelihood that such compensation is
intended to reimburse or replace compensation recovered by the estate under
this
section.</text>
</subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</section><section commented="no" display-inline="no-display-inline" id="H0B40BB6D85AE4FFFAB8AFE29A1E13A6B" section-type="subsequent-section"><enum>305.</enum><header display-inline="yes-display-inline">Preferential compensation
transfer</header><text display-inline="no-display-inline">Section 547 of title
11, United States Code, is amended by adding at the end the following:</text>
<quoted-block display-inline="no-display-inline" id="H9793CE67A2F84488AC39688F079E9714" style="USC">
<subsection commented="no" display-inline="no-display-inline" id="HEDA4DA92052343A3833C42DA1D38E219"><enum>(j)</enum><text display-inline="yes-display-inline">The trustee may avoid a transfer to or for
the benefit of an insider (including an obligation incurred for the benefit of
an insider under an employment contract) made in anticipation of bankruptcy, or
a transfer made in anticipation of bankruptcy to a consultant who is formerly
an insider and who is retained to provide services to an entity that becomes a
debtor (including an obligation under a contract to provide services to such
entity or to a debtor) made or incurred on or within 1 year before the filing
of the petition. No provision of subsection (c) shall constitute a defense
against the recovery of such transfer. The trustee or a committee appointed
pursuant to section 1102 may commence an action to recover such transfer,
except that, if neither the trustee nor such committee commences an action to
recover such transfer by the time of the commencement of a hearing on the
confirmation of a plan under section 1129, any party in interest may apply to
the court for authority to recover the claims for the benefit of the estate.
The costs of recovery shall be borne by the
estate.</text>
</subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</section><enum>IV</enum><header display-inline="yes-display-inline">Other Provisions</header>
<section commented="no" display-inline="no-display-inline" id="HCA2C8EEDEA7A443C9A76E0E54DCDA647" section-type="subsequent-section"><enum>401.</enum><header display-inline="yes-display-inline">Union proof of claim</header><text display-inline="no-display-inline">Section 501(a) of title 11, United States
Code, is amended by inserting <quote>, including a labor organization,</quote>
after <quote>A creditor</quote>.</text>
</section><section commented="no" display-inline="no-display-inline" id="H266A536EFC854F8CA431E87EF10E48E2" section-type="subsequent-section"><enum>402.</enum><header display-inline="yes-display-inline">Exception from automatic stay</header><text display-inline="no-display-inline">Section 362(b) of title 11, United States
Code, is amended—</text>
<paragraph commented="no" display-inline="no-display-inline" id="H6BBF6C456FA2407B994AD39099B071FA"><enum>(1)</enum><text display-inline="yes-display-inline">in paragraph (27), by striking
<quote>and</quote> at the end;</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H1A78FAC708004EAD92CB252C6FE19306"><enum>(2)</enum><text display-inline="yes-display-inline">in paragraph (28), by striking the period
at the end and inserting <quote>; and</quote>; and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HD0E0E799E6DC42D5ACEEEEDE5FAC5C9A"><enum>(3)</enum><text display-inline="yes-display-inline">by adding at the end the following:</text>
<quoted-block display-inline="no-display-inline" id="HFB8EC47B6BAE42118693D478D7AE1389" style="OLC">
<paragraph commented="no" display-inline="no-display-inline" id="HC2BE54A5C5E84483B48863D5648C0DA5"><enum>(29)</enum><text display-inline="yes-display-inline">of the commencement or continuation of a
grievance, arbitration, or similar dispute resolution proceeding established by
a collective bargaining agreement that was or could have been commenced against
the debtor before the filing of a case under this title, or the payment or
enforcement of an award or settlement under such
proceeding.</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></section>