
                         Roanoke Times
                 Copyright (c) 1995, Landmark Communications, Inc.

DATE: WEDNESDAY, February 20, 1991                   TAG: 9102200253
SECTION: NATIONAL/INTERNATIONAL                    PAGE: A-9   EDITION: METRO 
SOURCE: 
DATELINE: NEW YORK                                LENGTH: Short

JUDGE GIVEN TENTATIVE DREXEL DEAL

A tentative settlement of Drexel Burnham Lambert Inc.'s year-old bankruptcy case slashes billions of dollars in claims and allows the collapsed Wall Street firm to survive, lawyers said Tuesday.

U.S. District Judge Milton Pollack ordered creditors, federal regulators and others seeking money from Drexel to have a deal "buttoned up" by today.

The parties met the deadline, presenting a signed agreement to the judge late Tuesday, lawyers said. The details of the agreement were not immediately made public.

The parties said they have agreed to reduce their total claims from more than $10 billion to about $2 billion. A liquidation likely would have resulted in even sharper reductions in claims. - Associated Press

by CNB