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EASTERN AIRLINES ANNOUNCES GLOBAL COMPROMISE AND SETTLEMENT OFFER TO FORMER PILOTS

 MIAMI, Sept. 24 /PRNewswire/ -- Martin R. Shugrue Jr., trustee for the Eastern Estate, has extended an offer to individual eligible former Eastern pilots which would resolve all remaining administrative, priority and general unsecured claims of the former pilots.
 Shugrue noted that the proposed $9.2 million in payments that would be distributed to pilots under the offer, would be in addition to the $26.2 million paid out last month to more than 20,000 former flight attendants and salaried employees who accepted the same Global Settlement offer.
 The "Global Compromise and Settlement" offer, for those who elect to accept it, would provide payment at $.90 on the dollar for 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.
 If accepted by all eligible former pilots, the offer would resolve more than 15,000 claim items and would have the Estate paying out approximately $2.9 million in administrative claims and $6.3 million in priority claims. Approximately 4,400 eligible former pilots would participate in the distribution.
 Motions seeking Bankruptcy Court approval of the settlement offer have been filed and a hearing has been scheduled for Nov. 8, 1993. If approved, payments to those accepting the offer would be made on or before Dec. 10, 1993.
 Shugrue mentioned that he was pleased to be able to extend an offer he believes to be in the mutual best interests of the Estate and the former pilots. "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 former pilots to receive payments for their claims without further delay," he stated.
 -0- 9/24/93
 /CONTACT: John J. Sicilian of Eastern Airlines, 305-873-3455/


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

AW-PC -- FL006 -- 5424 09/24/93 12:27 EDT
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Publication:PR Newswire
Date:Sep 24, 1993
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