Rod Fritz is fired

Garrett Wollman
Sat Mar 31 10:23:26 EDT 2018

<<On Sat, 31 Mar 2018 10:10:58 -0400, I wrote:

> Contractual disputes generally get wrapped up into the bankruptcy
> proceeding (there's a technical word for that that I don't know).  The
> bankrupt is generally allowed to "reject" contracts that impede its
> reorganization, but I don't know how this affects labor contracts.

One other aspect of this: sometimes labor ends up being a significant
creditor, and can negotiate with the other creditors for terms that
are more favorable in the reorganization.  You saw this with GM and
the UAW: the union ended up being a major unsecured creditor of
old-GM's and used this to get concessions from most of the other
creditors.  (A minority of dissenters took the reorganization plan to
court but lost.)  Another example familiar to many: this is exactly
how Mario Lemieux ended up owning the Pittsburgh Penguins -- the team
went into bankruptcy, and he was willing to trade his substantial
unpaid salary for a share in the ownership, post-reorganization.

These sorts of scenarios are very unlikely with iHeart simply because
so few of its employees have union representation, thus the union
would not have much bargaining power in the committee of creditors.


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