If the airline does not meet the deadline, its creditors can file their own plans.

Seatrain's creditors filed $800 million in claims but the amount was reduced by negotiation.

Further, creditors may file with the court seeking relief from the automatic stay.

He added that no creditor could file a lien against the building during the first 120 days after a bankruptcy filing.

In Chapters 7, 12, and 13, creditors must file a "proof of claim" to get paid.

Before the hearing began yesterday, those creditors filed about 175 objections to the company's plan and how they would be reimbursed.

For example, a creditor may file an adversary proceeding to object to the debtor's discharge.

If these requests are denied, the creditors may file a legal challenge seeking to take control of the company, one of the sources said.

Termination of the period allows creditors to file their own reorganization plans.

More than 200 creditors have filed a total of more than $450 million in claims.