Drexel Unit Forced Into Bankruptcy: Creditors of...
From Times Staff and Wire Reports
Drexel Unit Forced Into Bankruptcy: Creditors of Drexel Burnham Lambert’s commodities trading unit forced the subsidiary into involuntary bankruptcy proceedings. Although the parent company, Drexel Burnham Lambert Group, has been in Chapter 11 proceedings since February and is closing down the entire firm, all of the subsidiaries until Wednesday had remained out of formal bankruptcy proceedings. The commodities subsidiary, Drexel Burnham Lambert Trading Corp., owes several foreign central banks more than $500 million related to gold transactions.
