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EASTERN TO DUKAKIS: PAY UP
(FORTUNE Magazine) – Kuwait Airways isn't the only carrier plagued with disappearing assets: Eastern Air Lines is being dismembered by its creditors. But Eastern, which shut down in January, recently asserted its own rights as a creditor. It's suing to recover $445,000 allegedly owed by the campaign of ex-presidential candidate Michael Dukakis, 57. Dukakis's lawyers are contesting the suit. While Dukakis had his own chartered plane during the 1988 race, aides flew Eastern and other carriers, paying with a special credit card. Under its terms, Eastern reimbursed rivals for flights by the aides. Dukakis, who left office as governor of Massachusetts in January, is getting far away from the fracas: He will soon begin teaching at the University of Hawaii. Even if Eastern does get the money, it won't get much satisfaction. All its cash either goes to pay bankruptcy expenses or gets distributed to the airline's creditors. |
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