P. M. BRIEFING : Creditors Agree on Drexel Plan
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NEW YORK — Drexel Burnham Lambert Group Inc. and its creditors agreed today to a plan to operate the company and its subsidiaries during bankruptcy proceedings for the collapsed Wall Street firm.
Also, attorneys for the committee of unsecured creditors said they will oppose an attempt by the Securities and Exchange Commission to be admitted to the committee. Drexel still owes the SEC $150 million to settle securities fraud charges brought last year.
Under the oversight scheme, which was was approved by U.S. Bankruptcy Judge Howard Buschman III, a panel of three Drexel board members will oversee the firm’s liquidation.
Four representatives of Drexel’s committee of unsecured creditors will attend daily board meetings, receive information about the company’s operations and have input into the liquidation.
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