The Nation - News from March 2, 1986

Eastern Airlines, in technical default on $600 million of its $2.5-billion debt, said in Miami that it had been assured by creditors that they would take no action as the airline reached a tentative contract agreement with its flight attendants, averting a strike. Eastern’s board of directors decided to sell the carrier last Sunday to Texas Air Corp. when the International Assn. of Machinists refused to renegotiate its contract with Eastern. With the sale to Texas Air and concessions Eastern obtained from its pilots and flight attendants, the IAMI’s refusal no longer means creditors will call in loans, an Eastern spokesman said.