P.M. BRIEFING : Eastern Readies Reorganizing Plan

Eastern Airlines plans to submit a bankruptcy reorganization plan before July 21, an attorney representing the carrier said today at a court hearing.

However, Deryck Palmer, an attorney for Eastern, also told U.S. Bankruptcy Judge Burton R. Lifland the airline would ask for another extension of its exclusivity period, during which competing reorganization plans may not be filed.

Last Wednesday, Lifland agreed to a joint request by Eastern and its major creditors to extend the exclusivity period for two weeks, through July 21, after they indicated they were nearing agreement on a restructuring plan.

Palmer did not indicate why the additional time was being sought.

A company seeking Chapter 11 protection has the sole right to submit a reorganization plan to the court during the first 120 days of its case, after which other parties may propose plans.