On January 15, 2016, the United States Court of Appeals for the Third Circuit (the “Third Circuit”) held in In re Trump Entertainment Resorts that section 1113 of the Bankruptcy Code permits a debtor to reject an expired collective bargaining agreement (“CBA”).

In September 2014, amid “deteriorating financial health” and a “desperate” financial situation, Atlantic City, New Jersey’s Trump Taj Mahal filed for Chapter 11 bankruptcy protection. Around that same time, the Taj Mahal was attempting to bargain with UNITE HERE Local 54 (the “Union”) to renegotiate the parties’ collective bargaining agreement (the “CBA”) prior to its expiration on September 14, 2014. The parties were unable to reach agreement and the CBA expired.