Drexel Successor to Sell for $209 Million : Brokerages: The purchase of New Street Capital by an Atlanta firm is good news for many former Drexel employees.

The sale of Drexel Burnham Lambert’s successor company may mean a merrier Christmas for many former employees of the once high-flying brokerage.

A trust set up following Drexel’s bankruptcy said Monday that the successor company, New Street Capital, will be sold for $209 million to Atlanta-based Green Capital Investors.

Along with the recent sale of some of New Street’s junk bond assets, the deal means there will be a pool of more than $600 million to distribute among Drexel’s unsecured creditors, including many former employees, said Steve Anreder, spokesman for the trust.

Former Drexel junk bond chief Michael Milken isn’t among those eligible to receive any of the money. But about $74 million will go to pay off debt to the Internal Revenue Service.

Many Drexel employees had received part of their compensation in the form of Drexel stock. When the brokerage collapsed into bankruptcy in February, 1990, amid the scandal over its junk bond operations, many feared the stock would be worthless.

But the resurgence of the market for high-yield bonds has made it possible for New Street to sell those assets at good prices.

Former Drexel stockholders and other creditors were given “certificates of beneficial interest” entitling them to a share of the proceeds from New Street. Holders have already received $500 for each certificate from earlier sales of assets, and the latest transactions will leave certificate holders close to whole.

Anreder could not say which former high-ranking Drexel executives will get money from the latest deal. The certificates were tradable, much like shares of stock, and it was not known which executives had already sold some or all of them.

Holcombe Green, Green Capital’s controlling investor, is also chairman and chief executive of textile maker Westpoint Stevens, New Street’s biggest holding.

A news release said that after the acquisition, Green Capital will continue to operate New Street as a merchant banking company.