You can only reject 'Executory'contracts-I forget the definition but it covers what most of us would think of as a contract and has to be under US law.
There is little to prevent the rejection of any of these contracts in law but in practice there are issues to be taken into account. If for example you want to reject a contract with someone you want to do more business with in future or thats on very advantageous terms to you its not always wise to reject an existing contract. The replacement contract might be on worse terms- for example NW buys its lubricants from x yz co under a contract witha term of ten years that fixed prices at 2002 levels -sure you can reject it but you still need lubricants and a new contract is going to be much much more expensive.
In otherwords you cannot just reject the debt you reject the whole thing and a lot of time gets spent weighing these issues up.
Of course soem areas-bond holders are betetr ptrotected than others and I think that legal fees are actually rated as the highest priority debt under Ch11 as well- no cynicism there then.
Sadly-being the US- Joe public is guaranteed to be screwed as employee or stockholder and the consequences for employees can be dire. I used Delta a lot in the 1990s when i lived in that aprt of the world and then were always decent folks to fly with and I feel very sorry for many of them. However this dog eat dog stuff thats the way they like it over there so I am told , but as we have seen recently in the States its mentality that means only a city block seperates main street from the thrid world
PB