Law360, New York (February 29, 2016, 11:44 AM EST) -- The Bankruptcy Code contains special protections for employees covered by collective bargaining agreements (CBAs) compared to counterparties to other types of executory contracts with debtor entities. Under Bankruptcy Code Section 365, the debtor may reject an executory contract that is burdensome to the bankruptcy estate. The U.S. Supreme Court in National Labor Relations Board v. Bildisco & Bildisco, 465 U.S. 513 (1984), found that CBAs were executory contracts that the debtor could reject if they burdened the estate and the balance of the equities favored rejection. Further, writing for the majority, Justice William Rehnquist held that it was not an unfair labor practice for an employer to file for bankruptcy and then unilaterally change the terms of a CBA without prior court approval. The Supreme Court found this would be consistent with the goal of the Bankruptcy Code to provide a debtor in possession with breathing room and flexibility....