European Stars and Stripes (Newspaper) - February 15, 1990, Darmstadt, Hesse                                Thursday. February 15. 1990 the stars and stripes Page 5 Drexel to file for bankruptcy Protection new York api Drexel Burnham Lambert inc. Said tuesday its Parent company was filing for Federal bankruptcy court Protection signalling the de Mise of the Wall Street firm that came to sym holi a Quick riches and scandal in the 1980s. Drc vol s Board of directors Aulhorn cd the Parent company. Drexel Burnham Lambert group inc. To seek Protection from creditors under chapter 11 of the Federal bankruptcy code. The step climaxed one of the most tumultuous Peri ods in Wall Street history for the cocksure investment House which pioneered the use of risky High interest junk Bonds to finance billions of dollars Worth of corporate Takeo ers under now indicted executive Michael Milken it also could has Broad effects far from Wall Street on companies that have invested in Drexel s junk Bonds pension funds that hold the securities and Busi Nesses attempting to a off junk Bond debt. Drexel was crippled by the government s insider trading investigation in w hich it pleaded guilty to six felonies and paid $650 million to Settle fraud charges. Milken s subsequent departure amid criminal allegations against him and the collapse of the junk Bond Market which Drexel still dominates contributed to the firm s troubles. Drexel Burnham Lambert group inc. Said tuesday it had defaulted on Ghoul $100 million in Loans and a Lack of Cash threatened to bring other defaults Drexel was turned Down for Hank financing in sought to Avert the filing. Drexel said the petition for re Organ action cues liabilities g exceeding $3 billion and As sets exceeding $3.6 billion. The company said the Hank rust by filing was being made tuesday night at us. Bankruptcy court in lower Manhattan. Chief executive Frederick Joseph told pm plovers tuesday morning the Parent company and certain subsidiaries would file for chapter ii. Which would protect Drexel from creditors claims while in attempted to Deal with its shattered finances. Workers later were told they would be paid thurs Day but or excl could guarantee nothing More. The chapter 11 filing excluded its broker dealer subsidiary. Drexel Burnham Lambert inc. And Drexel Burnham government securities inc. Few on Wall Street believe Drexel will survive Joseph Many Stock and Bond traders refused outright to do business with Drexel on tuesday. Stock Exchange specialists said Drexel brokers were open soliciting jobs on the new York Stock Exchange floor during the Day. The firm began liquidating its positions in billions of Dol Lars Worth of government Bonds mortgage backed securities and other financial instruments. Negotiated to Transfer customer accounts to Smith Barney. Harris i Pham & co. Withdrew As a Market maker in More than 200 Over the counter stocks. I it entire business units up for Sale. Wall Street professionals said Shock Waves from Drexel s disclosure were muted because its crippling financial problems had been anticipated and the de Cline of its junk Bond business known for months. Mso. Drexel said monday it was seeking an investor or merger partner to help prevent its collapse. Wary of the broader Impact of Drexel s possible collapse the securities and Exchange commission.  Reserve Board and Nasf coordinated plans on How to prevent a financial panic. The Sec said it had mined to protect the assets of the broker dealer subsidiary in barring it from trans Ferring net capital to the Parent without specific approx Sal schools reopen in Selma amid heavy Security Selma. Ala. Coiled Selma High school and marched around a flagpole chanting shut pm Down no school1" before the opening hell Ghoul 25 protesters continued a sit in at cil Hall for a seventh Day. Outside some carried signs saying Equality education this is the first Lime troopers have been used to ensure that Whites could go to  said Jamie Wallace a acc utne director of the Selma c Hambur of Commerce. The protest prompted by the dismiss Al of the City s first Black school superintendent by White school Board members was less strident than in recent Days when throngs of Black demonstrators re kindled images of historic Selma marches in the l%0s. The superintendent. Norward Rous sell. Who was reinstated last week called for racial Unity tuesday. But he said he doubled the conflict will end until there is some movement on my  which expires in june. School protesters confront Alabama state troopers on t be stay in Selma. His supporters contend he is being Dis missed because of his race and action he took on behalf of Black students not because of an alleged Lack of managerial skills cited in an evaluation. He has held the $80.000 Post Lor 2 years. Protesters also want the school Board with six Whites and Fie Blacks to be elected rather than appointed by the City Council which has five Whites Anil four Blacks. The City is 52 percent Black. It saddens me that children have to be pulled into a political and racial conflict that should have been solved years ago. After the Edmund 1 Eltus Bridge said Roussell. He referred to the Selma Bridge where marchers were clubbed h state troopers in 1965 in what became known As bloody  a Milestone in the drive for equal rights. Hunt agreed to dispatch 200 military police from National guard ranks to join an undisclosed number of slate troopers and local police in guarding Selma s ii Public schools which closed feb. 7 amid rising racial tensions. The a Slem. With 5.1 7i students is about 70 percent Black. Roussell said about 2.1 percent of the students were absent tuesday. He had predicted 30 percent would stay Home because of uncertainly incr the school environment. Chrysler reports huge losses Highland Park. Mich. A Chrysler corp. On tuesday reported a $664 million fourth Quarter loss and a two thirds drop in annual earnings for 1989, Mosluk due to costs of closing plants and cutting jobs. The results mean no profit sharing for hourly work ers and no bonuses for salaried employees at the nation s third largest automaker. Chrysler chairman and chief executive officer Lee a. Iacocca said. But Iacocca said the Belt lightening moves were needed to compete in a slow automotive Market. The quarterly $664 million net loss equivalent to $2.90 a share compared with net earnings of $433 million or $1.85 a share in the fourth Quarter of 1988. Chrysler said sales and revenues for the Quarter sagged to $7.9 billion from $9.3 billion a year earlier. For the car. The company reported net income of $359 million or $1.55 a share on revenues of $34.92 billion Down 66 percent from $1.05 billion or $4.66 a share on revenues of $34.15 billion in 1988. Much of Chrysler s first quarterly loss since 1982 was from a restructuring charge of $577 million. That covered costs of closing plants in Detroit and St. Louis discontinuing some cars and paying pension and Severance costs to trim the White Collar work Force. The company said. The $577 million charge was partly offset by a $309 million gain on the Sale of Mitsubishi motors corp. Stock the company said. Chrysler also said that to raise Cash in had agreed to sell its gulfs Ream aerospace subsidiary for $825 Mil lion to a partnership of Alk a e. Paulson chairman and founder of a Savannah. Ga.,-based maker of corporate jets and the new York investment firm of Forstmann Little & co. It sounds like Back to the  said Auto analyst Mary Anne Sudol of Fitch investors service in new York. It s a More vicious competitive environment for sure. The race is to the lowest Cost  United Auto workers president Owen Bieber and vice president Stan Marshall who directs the Liaw s Chrysler department said in a statement at least there will be some Equality of sacrifice and Chrysler executives will have to go without bonuses As Well Chrysler shut Down an Assembly Plant in Detroit and announced plans to close its St. Louis car Assem Bly Plant in september. The company also announced a Cost cutting pro Gram in october aimed at cutting $1 billion from its $26 billion annual budget by the end of this year including elimination of 2,300 salaried jobs and has since boosted the Cost cutting goal to $ 1.5 billion. The country s of two automakers general motors corp. And Ford motor co., arc to report earnings thursday. Viands of time in the stars and stripes 40 years ago today. Feb. 15, 1950 the United Stales issued a virtual invitation to the soviet Union to enter into negotiations for atomic control. This change of Lone toward the soviets was revealed during a talk by assistant Secretary of stale John Hickerson. 30 years ago today. Feb. 15. I960 the air Force chief of staff warned against the establishment of a round the clock . Airborne Alert because he said in could prod soviet leaders into rash decisions. 20 years ago today. Feb. 15. 1970 eight teen agers were crushed to death when an onrushing freight train slammed into a minibus filled with 16 youths in Stockton Calif. 10 years ago today. Feb. 15, 1980 president Carter reported Posi Tive signs for the american hostages in Tehran but he bitter accused sen. Edward Kennedy. A mass. Of hampering the delicate efforts to free them