Drexel Creditors Balk: Creditors of Drexel Burnham...
From Times Staff and Wire Service Reports
Drexel Creditors Balk: Creditors of Drexel Burnham Lambert Group Inc. rejected a bankruptcy reorganization proposal made by the collapsed Wall Street firm. The creditors committee said it would seek to present its own plan to the U.S. Bankruptcy Court that would remove Drexel’s current management as it emerges from Chapter 11 protection from creditors. Creditors said they were dissatisfied with Drexel’s proposal that would keep management in control as the company liquidates assets. They also said a plan to repay creditors of most subsidiaries with cash and creditors of the parent company with notes backed by Drexel’s assets was unacceptable.
