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EASTERN AIRLINES ANNOUNCES $14 MILLION GLOBAL COMPROMISE AND SETTLEMENT OFFER TO FORMER IAM-REPRESENTED EMPLOYEES

 MIAMI, Oct. 13 /PRNewswire/ -- Martin R. Shugrue Jr., trustee for the Eastern Estate, has extended a $14.8 million offer to individual eligible former IAM-represented employees that would resolve all of their remaining administrative, priority and general unsecured claims.
 The tustee noted that the offer to the former mechanic and related employees, dispatchers and technical instructors, represents the culmination of employee settlements that have resulted in payment of more than $150 million in priority and administrative claims to more than 40,000 former employees since Eastern ceased operations in January 1991.
 The "Global Compromise and Settlement" offer, for those who elect to accept it, would provide payment of 90 percent of their allowed administrative and priority claims. Remaining general unsecured claims would be fixed at a certain sum and paid at a certain percentage on the dollar pursuant to a confirmed final plan of liquidation. The offer excludes stock-related claims.
 Shugrue further noted that the proposed $14.8 million in payments that would be distributed under the current offer, would be in addition to the $26.2 million paid out in August to more than 20,000 former flight attendants and salaried employees who accepted the same Global Settlement offer. Further, in September, the same settlement offer was extended to pilots, which, if accepted, provides for a December distribution of another $9.2 million among eligible former pilots.
 If accepted by all eligible former mechanic and related employees, dispatchers and technical instructors, the offer would resolve more than 25,000 claims and would require the Estate to pay out about $3.3 million in administrative claims and $11.5 million in priority claims. More than 13,000 eligible former employees would participate in this distribution.
 Motions seeking bankruptcy court approval of the settlement offer have been filed and a hearing has been scheduled for Nov. 22, 1993. If approved, payments to those accepting the offer would be made on or before Dec. 17, 1993.
 Shugrue mentioned that he was pleased to be able to reach an accommodation to extend an offer that is clearly in the best interests of the Estate and the former IAM-represented employees. "If approved by the Court and accepted by employees, the offer will resolve large numbers of pending claims without costly and time consuming litigation and will allow the former employees to receive payments for their claims without further delay," he stated.
 The completion of the employee settlement programs will have resulted in cash distributions of $150.3 million to former employees as follows: Notice Pay $14.4; Severance Pay $57.3; Grievance and Litigation $29.7, and Global Claims (vacation, priority, etc.) $48.9.
 -0- 10/13/93
 /CONTACT: John J. Sicilian of Eastern Airlines, 305-873-3455/


CO: Eastern Airlines ST: Florida IN: AIR SU:

AW-JV -- FL007 -- 1592 10/13/93 10:58 EDT
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Publication:PR Newswire
Date:Oct 13, 1993
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