In such a case, he said, Eastern might have to pay $70 million to holders of trust certificates on some of its planes.

The dividend will be paid on Jan. 29 to holders of record on Dec. 27.

Under the plan, Interco said, the company would pay $2.43 billion in stock and securities to holders of the company's common stock.

Both securities are supposed to start paying cash to holders in 1993.

The company pays about $2 billion a year to holders of its common stock.

In August 1997, the company paid $2 million in cash to common stockholders and holders of warrants during the class period to settle the case.

The Government cannot ignore those obligations any more than it could refuse to pay interest to holders of Government bonds.

At the new rate, the New York financial powerhouse will pay about $26.7 million to holders of the common stock over the next four quarters.

Instead, dividends paid to holders of common stock are set by management, usually with regard to the company's earnings.

The Government must pay about $25 billion in interest to holders of securities by mid-November.