Good Omens For Drexel And Milken
Disgraced and bankrupt, Drexel Burnham Lambert may live to trade again. On Feb. 19, the firm's many creditors and litigants, who had sought $20 billion in claims, agreed to settle for $2 billion. That should leave Drexel, which has $2.8 billion in assets, enough cash to emerge from bankruptcy and reopen its doors.
Meanwhile, Drexel's former junk bond czar, Michael Milken, who pleaded guilty to six felony counts in April, got cheery news. Federal Judge Kimba Wood, who sentenced Milken to 10 years in prison last November, said she would recommend he be paroled after only three years.