
                         Roanoke Times
                 Copyright (c) 1995, Landmark Communications, Inc.

DATE: THURSDAY, April 5, 1990                   TAG: 9004040986
SECTION: BUSINESS                    PAGE: A11   EDITION: METRO 
SOURCE: 
DATELINE: NEW YORK                                LENGTH: Short

CREDITORS VOTE TO SELL EASTERN

Eastern Airlines' unsecured creditors voted unanimously Tuesday to turn down the carrier's latest reorganization plan and ask a bankruptcy judge to appoint a trustee to sell the airline.

The move came after Eastern reportedly told the creditors - ranging from food caterers to engine manufacturers - that it was prepared to pay only 25 cents on the dollar on its nearly $1 billion in debt. When the carrier first declared Chapter 11 bankruptcy March 9, 1989, Frank Lorenzo, chairman of Eastern and its parent Texas Air Corp., vowed to pay creditors 100 cents on the dollar. - Los Angeles Times

by CNB