A bill to amend title 11 of the United States Code to clarify the circumstances under which collective bargaining agreements may be rejected in cases under chapter 11 of such title, and for other purposes.

Amends the Bankruptcy Code to permit a trustee to reject or assume a collective bargaining agreement made under the authority of title II of the Railway Labor Act or the National Labor Relations Act only if and after the court approves such rejection or assumption. Requires notice to all parties and a hearing before the court may approve such a rejection.

Prohibits the court from approving the rejection of a collective bargaining agreement if, absent the rejection: (1) the jobs covered by such agreement will be lost; and (2) any financial reorganization of the debtor will fail.

Declares that a rejection of a collective bargaining agreement constitutes a breach at the time of such rejection.

Declares that no provision of this Act shall be construed to permit the trustee unilaterally to terminate or alter any of the terms and conditions of such a collective bargaining agreement.