The Debtors have filed a Motion asking the Court to extend the initial period granted by the Bankruptcy Code to assume or reject unexpired leases of nonresidential real property. Section 365(d)(4)(B) of the Bankruptcy Code gives Debtors 120-days to assume or reject unexpired leases of nonresidential real property (the "Lease Rejection Period"). The Debtors' Lease Rejection Period was set to expire on March 28, 2012. The Debtors have requested that the Lease Rejection Period be extended by ninety (90) days, from March 28, 2012 through and including June 26, 2012.
Hearing Date: March 22, 2012 at 12:00 p.m.
Objection Deadline: March 15, 2012 at 4:00 p.m.
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On March 9, 2012, the Debtors filed a Motion seeking to dismiss the complaint (the "Complaint") filed by the Allied Pilots Association (the "Pilots") on February 28, 2012. The Pilots filed the Complaint asking the Court to determine that section 1113 of the Bankruptcy Code does not apply to its collective bargaining agreement because that agreement terminated by its terms. The Debtors argue that the Complaint should be dismissed as a matter of law because the Railway Labor Act prolongs agreements that are subject to its provisions regardless of what the collective bargaining agreements say about termination until the parties exhaust dispute resolution and renegotiation processes. The Debtors further argue that the Second Circuit applied section 1113 of the Bankruptcy Code where a collective bargaining agreement terminated by its terms, most recently in the Northwest bankruptcy. Finally, the Debtors argue that the purpose of section 1113 of the Bankruptcy Code would be undermined if the Court found that the section inapplicable where a collective bargaining agreement terminated by its terms.
The matter is set for trial on March 22, 2012.