Foreign creditors rejected the proposal as inadequate.

In filing the motion on Friday, the creditors rejected options that would have left the current board in place.

Last week, the bankrupt airline's unsecured creditors rejected an Eastern plan that would have repaid them 25 cents on the dollar.

Many creditors rejected that arrangement, and two of them filed lawsuits against the company.

The creditors have rejected Mr. Robertson's $500,000 offer as inadequate.

Foreign creditors are asking for 72 percent of the value of their debt and have steadfastly rejected an offer of 43 percent repayment.

If the judge or the creditors reject a plan, the bankrupt company can offer a new one.

Twice, the city of Westminster sought to declare for bankruptcy; the first effort, in 2001, failed after creditors rejected a payout plan.

The unsecured creditors rejected the deal and opted to auction the property hoping for a better deal.

But creditors have rejected the notion, at least for the time being.