NEW YORK — Northwest Airlines Chairman Alfred A. Checchi is expected to make a proposal to Eastern Airlines and its creditors under which he would oversee a controlled liquidation of Eastern assets, it was reported today.
The plan would call for Northwest to take over certain Eastern assets, including 80 of Eastern's newer aircraft, airport gates in Atlanta and maintenance facilities in Atlanta and Miami, The Wall Street Journal said.
In return, the story said, Checchi would volunteer to broker the sale of Eastern's remaining assets for the benefit of creditors.
The story, which cited unnamed people familiar with the proposal, did not make clear how Eastern and those representing its creditors would react to the proposal.
Eastern spokesman Jim Ashlock said the company had no comment on the report. But he said Eastern Trustee Martin Shugrue, who is running the airline under bankruptcy reorganization, has said he wants to sell the entire airline and that there will be no liquidation.