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P.M. BRIEFING : Airline Bankruptcy Case Halts

From Times Wire Services

A bankruptcy court judge today adjourned a hearing in the Eastern Airlines case for several hours to allow the airline’s unsecured creditors a chance to discuss a new proposal offered by the airline.

The hearing was scheduled to consider a request by the unsecured creditors’ committee for a trustee to be appointed to take control of Eastern away from its current management and find a buyer for the crippled carrier.

The adjournment was requested by the attorney for the airline’s unsecured creditors’ committee.

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Representatives of Eastern and its parent, Texas Air Corp., contacted the creditors Thursday night regarding a new proposal by the airline, said Joel Zweibel, attorney for the creditors.

The creditors’ committee agreed to meet with the airline’s representatives and consider the proposal today, he said.

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