European Stars and Stripes (Newspaper) - April 20, 1990, Darmstadt, Hesse                                Page 6 a a a the stars and stripes Friday april 20,1990 bankruptcy judge appoints trustee for Eastern airlines by the los Angeles times new York a a Federal bankruptcy judge wednesday night stripped Frank Lorenzo the fiery chairman of Texas air corp., of his authority Over the company sailing Eastern airlines subsidiary and named a trustee to oversee the Carrier. Eastern executives had said that such a move would be the death Knell of the Miami based airline which sought bankruptcy court Protection in March 1989 after a strike by machinists pilots and flight attendants brought the already weak Carrier to its Knees. But judge Burton r. Lifland rejected Eastern a arguments Ana granted creditors a request for a trustee. The unsecured creditors Are owed $980 million. The creditors who initially backed Eastern a management had been angered by the airlines Ever shrinking projections of the amount of debt that it could repay. A the time has come to replace the Pilot to Captain Eastern airlines Crew a Lifland told a courtroom packed with lawyers reporters and airline workers. A a Eastern a owner management is not competent to reorganize the  named trustee of Eastern was longtime Industry exec a Martin r. Shugrue who last year was fired by Loas president of Continental airlines another subsidiary of Texas air. He joined Continental in 1988 after being eased out As vice chairman of pan am corp. In issuing his ruling following a four Day hearing Lifland cited Eastern a failure to meet its financial projections. Lifland also noted the massive losses that Eastern has reported since seeking Protection under chapter 11 of the . Bankruptcy code. Lifland said Eastern originally projected a deficit of $636.4 million from Panl 1989 through december 1989, but the airline actually wound up losing More than $865 million during that period and has lost $1.2 billion since the bankruptcy filing. The appointment of a trustee a rare move apparently signals that Eastern a is going in deeper rather than turning things around a said Richard a. Stewart a bankruptcy specialist with the accounting firm Grant Thornton in los Angeles. Once named by the judge a trustee is authorized to supervise the daily operations of the chapter 11 company. A trustee could keep current executives in place or on the other hand remove the entire senior management team. A fundamentally its a fresh look at the entire operation a Stewart said. While managers of a company operating under chapter 11 bankruptcy Law Protection continue to report to their Board a trustee reports directly to the bankruptcy judge and is paid by the court. Lifland a decision came after a Marathon session that began Early wednesday and ended late in the evening. The judge then called a recess of a Little More than an hour before spending 30 minutes Reading his decision. After the ruling Robin Matell a spokesman for Eastern said a a we la review and study the court order and will comply with the directions of the court. We intend to work with the trustee and we Are certainly pleased it is or.  he declined to say whether there would be an Appeal. Earlier wednesday Lorenzo made his first appearance in the bankruptcy court since Eastern made its chapter 11 filing. He testified that the value of Texas Aires stake in the airline had shrunk to  asked what Lorenzo and his company now owned Joel Zweibel lawyer for the Eastern creditors replied a a piece of paper i  Frank Lorenzo leaves bankruptcy court after being stripped of his authority Over Eastern airlines. During his testimony Lorenzo outlined the latest proposal from Texas air which he termed its final offer. It would he said have paid the creditors 30 cents on the Dollar with a combination of Cash Stock and notes. When the bankruptcy Case was first filed Lorenzo first promised creditors a they Range from food caterers to engine manufacturers a full repayment. The offers subsequently were lowered to 50 cents on the Dollar then to 25 cents on the Dollar. Eastern cited poor business conditions and bad publicity As being responsible for its downturn. Zweibel rejected Lorenzo a last offer and said in his summation that a the creditors committee reluctantly seeks the appointment of a trustee. We see the role of the trustee to operate the airline sell the airline to bring this to a successful conclusion but not to liquidate the  the main Contention of Eastern during the trial was that if a trustee were appointed it would Send passengers and travel agents elsewhere and result in the liquidation of the Carrier. Stateside group says pornography funded by taxpayers Washington apr a pornography fighting Christian group is blanketing Congress with envelopes it says contain a a filthy pictures of homosexual acts from a taxpayer funded Art exhibit. Each envelope marked a extremely offensive material enclosed holds explicit photographs and drawings from the a David Wojnarowicz tongues of flame show mounted with a $ 15,000 Federal Grant. The american family association Hopes a Good look at reproductions of 14 images displayed at the University galleries at Illinois state University will persuade lawmakers to kill funding for the National endowment for the arts. A a we re spending $175 million in this area that benefits primarily the Rich and the perverted a the Rev. Donald Wildmon founder and director of the Tupelo  association said wednesday. Guam attorney challenges court ruling on abortion Agana Guam apr gov. Joseph Adas chief counsel contends in court papers that the 1973 . Supreme court decision guaranteeing the right to an abortion does not apply to this . Territory. The memorandum argued that Roe is. Wade and Webster v. Reproductive health services the july decision giving states More authority to restrict abortion without overturning the earlier ruling Are not in Force in Guam because it is a territory. Ada signed the nations most restrictive antiabortion measure into Law last month. Enforcement remains on hold pending a hearing in Federal court May 8 on a Challenge brought by a woman who wants an abortion. Katherine Maraman the governors Legal counsel and attorney Monessa Lujan argued that Many of the constitutions due process and equal Protection provisions do not fully apply to Guam in recognition of its traditions. The new Law if upheld by the court would make it a felony for doctors to perform abortions and a Misdemeanour for women to have abortions except in cases where the pregnancy would endanger the mothers life. The measure also makes it a Misdemeanour to solicit women to have an abortion. Chicago air controllers protest shortage of chairs Chicago apr some controllers at the Chicago air route traffic control Center Are sitting on garbage cans and crates these Days because of a backlog of orders for chair parts Union officials said. The broken chairs threaten the efficiency of the controllers who need Good chairs to have a Clear View of radar screens said Jim Poole chairman of the National air traffic control association chapter at the Center 40 Miles West of Chicago. Union and Federal aviation administration officials said the Lack of chairs a Ordinary office chairs designed for Good posture a posed no danger to traffic safety at the Center one of the nations busiest with about 400  to Rush development of electric powered Cor Washington apr general motors corp. Is expediting development of an electrically powered car in recognition of consumer demand for a cleaner environment chairman Roger b. Smith said wednesday. The nations largest automaker intends to be the first to mass Market the vehicle Smith said in a speech to the National press club. Pm unveiled a prototype vehicle the Impact in january. He refused to say when or where the car would be built or to reveal technical information about the vehicle saying he did not want to tip off competitors. In the 1970s, pm announced it would produce a 1985-Model electric car but it dropped that project Long before production. Smith said the goal is to manufacture a car that would match today a safety and performance standards without the air pollution of an internal combustion engine. Generation of the electricity of course would create other pollution if Fossil fuels were used in the Power Plant. A we have set an aggressive schedule for ourselves in order to pull along the technological developments that we still need a Smith said. Still needed is a better Battery and Smith said that May require joint development by automakers utilities Battery manufacturers and the Federal government. Though obstacles remain a when we look at the strict clean air legislation that Snow being proposed for Many areas of the country we re convinced that the Impact has a Bright  Smith defended the automobile Indus try a environmental record. He said the average vehicles weight has dropped by 27 percent aerodynamic efficiency has improved by one third transmissions and air conditioning Are More efficient engines Are electronically controlled and Burn less fuel while emitting 75 percent to 96 percent less pollution than the cars of 1970, the year of the first Earth Day. A the truth is that no one understands the importance of the environment better than we a Smith said. His remarks were sharply criticized by environmental groups. A for him to come Here today and declare himself an environmentalist is the height of hypocrisy a said Bill Magavee Stair attorney for the . Public interest research group at a news conference after Smiths speech. Many of the improvements Smith mentioned resulted from Laws and regulations that the Industry fought said Robert Dewey of the environmental action foundation. A the company Sceo says one thing and their lobbyists say another a Dewey said. Automakers lobbied against new tailpipe standards sought by environmentalists in a pending update of the clean air act. The Industry also is gearing up to fight a Senate Bill to boost cars minimum fuel efficiency from 27.5 Miles per gallon to an average of 40 mpg. Smith said a we do oppose things that Are not practical things that Are not environmentally sound Over regular o and things that do not add to the welter of our