Opinion ID: 774948
Heading Depth: 1
Heading Rank: 3

Heading: reorganization in the best interests of the creditors

Text: 28 Growers also contend that the reorganization plan violates the best interests of the creditor rule, requiring impaired creditors to receive at least as much under a Chapter 11 reorganization plan as they would under a Chapter 7 liquidation of the debtor. 11 U.S.C. §§ 1129 (a)(7)(A)(ii)(1993). Growers contend that if there were a Chapter 7 liquidation, additional assets would be available for distribution: the Local's right to represent workers and its right to collect future dues. 29 Were the Local to be liquidated, however, there would be no distribution to Growers, because the NLRA prevents collective representation rights from being transferred without worker approval and requires the chosen bargaining representative to use dues solely for the members' and the labor organization's benefit. See 29 U.S.C. §§ 157 (1998)(conferring on workers the right to bargain collectively through representatives of their own choosing); 29 U.S.C. §§ 501(a) (1998)(requiring bargaining representatives to hold money and property exclusively for the benefit of the[labor] organization and its members). Thus the local union's collective bargaining agreement and its right to collect future member dues could not be liquidated to pay off creditors. See NLRB v. Fin. Inst. Employees Local 1182, 475 U.S. 192, 202-03 (1986)(holding that labor law prohibits the assignment or transfer of a collective bargaining agreement against the wishes of the workers for whom the agreement provides reppresentation).