IN RE IONOSPHERE CLUBS, INC.

Bankruptcy Nos. 89 B 10448 (BRL), 89 B 10449 (BRL).

113 B.R. 164 (1990)

In re IONOSPHERE CLUBS, INC., and Eastern Air Lines, Inc., Debtors.

United States Bankruptcy Court, S.D. New York.

April 19, 1990.


Attorney(s) appearing for the Case

Weil, Gotshal & Manges, New York City by Bruce R. Zirinsky, Zack A. Clement, Deryck A. Palmer, Sharon Youdelman, Laura M. Sillins, Brian S. Rosen, for debtors.

Kramer, Levin, Nessen, Kamin & Frankel, New York City by Joel B. Zweibel, Adam Harris, for Creditors Committee.

Dickstein Shapiro & Morin by Samuel Stern, Hazel, Thomas, Fiske, Weiner, Beckhorn & Hanes, P.C., Washington, D.C. by Stanley J. Samorajczyk, Robert M. Marino, for Examiner.

Hughes Hubbard & Reed, New York City by Robert J. Sisk, for Texas Air Corp.

Cohen Weiss and Simon, New York City by Bruce H. Simon, Richard M. Seltzer, for ALPA.

Guerrieri, Edmond & James, P.C., Washington, D.C. by Joseph Guerrieri, Robert S. Clayman, for IAM.

O'Donnell & Schwartz, New York City by Carl Rachlin, for TWU.

Otto G. Obermaier, U.S. Atty., New York City by James Garrity, Jr., Asst. U.S. Atty., for Dept. of Transp.

Berlack, Israels & Liberman, New York City by Edward S. Weisfelner, David Strumwasser, for Preferred Shareholders Committee.

Carol Connor Flowe, Washington, D.C., Otterbourg, Steindler, Houston & Rosen, P.C., New York City by William M. Silverman, Enid Nagler Stuart, for Pension Ben. Guar. Corp.

Simpson Thatcher & Bartlett, New York City by Lillian E. Kraemer, for Airbus.

Zalkin, Rodin & Goodman, New York City by Henry L. Goodman, for Boeing Co.

Anderson Russell Kill & Olick, P.C., New York City by Roy Babitt, for Ad Hoc Committee of Bondholders.

Rogers & Wells, New York City by Richard S. Miller, for IBJ Schroder Bank & Trust Co.

Shanley & Fisher, P.C., New York City by Robert K. Malone, for Midlantic Nat. Bank.

Bruce H. Roswick, New York City, for First Fidelity Bank, N.A. as Collateral Trustee.

Gibson, Dunn & Crutcher, New York City by Peter C. Rockwell, for Nat. Westminster Bank, N.J. as Series A Trustee.

Clapp & Eisenberg, P.C., Newark, N.J. by Karen L. Gilman, for United Jersey Bank as Trustee Second Series Indenture.

Richard K. Helman, New York City, for The Port Authority of NY & NJ.

Riker, Danzig, Scherer & Hyland & Perretti, Morristown, N.J. by Rafel Perez, for First Fidelity Bank N.A. as Collateral Trustee.

Dow, Lohnes & Albertson, Washington, D.C. by David F. Bantleon, for Maryland Nat. Bank.

David I. Shapiro, Examiner.

Harold D. Jones, U.S. Trustee.


RULING ON MOTION BY CREDITORS' COMMITTEE FOR THE APPOINTMENT OF A CHAPTER 11 TRUSTEE

BURTON R. LIFLAND, Chief Judge.

BACKGROUND

On March 9, 1989 (the "Filing Date") Eastern Air Lines, Inc. and its affiliate Ionosphere Clubs, Inc. (the "Debtors" or "Eastern") each filed a voluntary petition for relief under chapter 11, title 11, United States Code (the "Code"). By order dated March 9, 1989, the cases were consolidated for procedural purposes only...

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