P.M. BRIEFING : Drexel Unit Files for Chapter 11

A spokesman for fallen Wall Street powerhouse Drexel Burnham Lambert Group Inc. today said the firm’s government securities subsidiary has filed for federal bankruptcy protection.

With the filing late Wednesday, Drexel Burnham Lambert Government Securities Inc., listing assets of $262.2 million and liabilities of $155.2 million, joins its parent company and 15 other Drexel subsidiaries that previously petitioned for Chapter 11 bankruptcy protection from creditors.

Reeling from the collapse of the junk-bond market, the parent filed for Chapter 11 relief Feb. 13 in the largest bankruptcy action in Wall Street history. Drexel’s broker-dealer arm and 14 other units sought the same protection May 29.

Drexel spokesman Steve Anreder said the filing is “part of a program to consolidate all these entities into one bankruptcy case.”