[Federal Register Volume 60, Number 12 (Thursday, January 19, 1995)]
[Notices]
[Pages 3893-3894]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-1284]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. IC-20833; 811-4135]
Drexel Burnham Lambert Unit Trusts; Notice of Application
January 12, 1995.
AGENCY: Securities and Exchange Commission (``SEC'').
ACTION: Notice of application for deregistration under the Investment
Company Act of 1940 (the ``Act'').
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APPLICANT: Drexel Burnham Lambert Unit Trusts
RELEVANT ACT SECTION: Order requested under section 8(f).
SUMMARY OF APPLICATION: Applicant seeks an order declaring it has
ceased to be an investment company.
[[Page 3894]]
FILING DATES: The application was filed on August 17, 1994 and amended
on December 22, 1994.
HEARING OR NOTIFICATION OF HEARING: An order granting the application
will be issued unless the SEC orders a hearing. Interested persons may
request a hearing by writing to the SEC's Secretary and serving
applicant with a copy of the request, personally or by mail. Hearing
requests should be received by the SEC by 5:30 p.m. on February 6,
1995, and should be accompanied by proof of service on the applicant,
in the form of an affidavit or, for lawyers, a certificate of service.
Hearing requests should state the nature of he writer's interest, the
reason for the request, and the issues contested. Persons may request
notification of a hearing by writing to the SEC's Secretary.
ADDRESSES: Secretary, SEC, 450 Fifth Street, N.W., Washington, D.C.
20549. Applicant, c/o The DBL Liquidating Trust, 450 Lexington Avenue,
Suite 1400, New York, NY 10017-3911.\1\
\1\The DBL Liquidating Trust is the successor to applicant's
depositor. Drexel Burnham Lambert Incorporated (``Drexel''), for the
purpose set forth in its Second Amended and Restated Joint Plan of
Reorganization under Chapter 11 of the United States Bankruptcy
Code.
FOR FURTHER INFORMATION CONTACT: Marianne H. Khawly, Staff Attorney, at
(202) 942-0562, or C. David Messman, Branch Chief, at (202) 942-0564
(Division of Investment Management, Office of Investment Company
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Regulation).
SUPPLEMENTARY INFORMATION: The following is a summary of the
application. The complete application may be obtained for a fee from
the SEC's Public Reference Branch.
Applicant's Representations
1. Applicant is a registered unit investment trust under the Act
and was organized as a business trust under the laws of the State of
New York. On October 17, 1984, applicant filed a Notification of
Registration on Form N-8A pursuant to section 8(a) of the Act and a
registration statement on Form N-8B-2 under section 8(b) of the Act and
under the Securities Act of 1933 (the ``Securities Act''). The
registration statement became effective on November 27, 1984.
2. Between November 27, 1984 and July 30, 1987, applicant
registered and commenced initial public offerings for High Income Trust
Securities Series (``HITS Series'') 1 through 13 and the First
Preferred Put Series (``Preferred Series''). Each series had a single
class of securities (the ``unit(s)'').
3. Complete liquidation of the interests of all unit holders was
made in connection with the termination of the trusts according to
their terms. In connection with the termination of HITS Series 1
through 3 and HITS Series 6 through 13, liquidating trusts were created
by a Liquidating Trust Indenture (the ``Liquidating Indenture'') dated
June 29, 1989. United States Trust Company of New York (the ``UIT
trust'') acts as trustee for the liquidating trusts. The Liquidating
Indenture was created for the purpose of liquidating the securities set
forth in the schedules to the Liquidating Indenture which securities
were not sold by the UIT trustee in connection with the termination of
the trusts as a result of a determination that transfer of such
securities at such time to liquidating trusts would be in the best
interests of the unit holders. The Liquidating Indenture was created
pursuant to two trust indentures and agreements dated November 26, 1984
and May 29, 1985, each between Drexel, the UIT trustee, and Interactive
Data Services, Inc. (the ``Evaluator'').
4. Securities remain in the liquidating trusts for HITS Series 2,
6, and 8. The number of units outstanding for those liquidating trusts
are 26,250, 15,746, and 18,200, respectively. The number of security
holders of the liquidating trusts are 442, 466, and 489, respectively.
The securities which remain were received in a restructuring of the
issuer's debt and have not been registered under the Securities Act.
Upon expiration of the time period specified in rule 144, the UIT
trustee anticipates that it will be able to sell the securities and
distribute the proceeds less expenses to the security holders of the
trusts.
5. The liquidating trusts' activities are limited to holding the
assets transferred to liquidating trusts by the trusts on behalf of
their beneficiaries with respect to such assets, preserving and
protecting the property of the liquidating trusts, and providing for
the orderly liquidation of the assets transferred to the liquidating
trusts.
6. Distributions from each liquidating trust were made in
accordance with the Liquidating Indenture. Upon receipt of the last
proceeds of sale of the securities of each liquidating trust, the UIT
trustee paid itself any amounts then owed in respect of accrued fees
and expenses and distributed to each unit holder who had surrendered
his or her certificate, by check, such unit holder's interest in the
balance of he principal and interest accounts.\2\ With respect to bonds
held in the HITS Series, the UIT trustee sought bids form three dealers
in the securities (in certain cases, three bids could not be obtained)
and the sale was made to the highest bidder. The securities held in the
Preferred Series were sold to Goldome FSB, pursuant to a put option, in
accordance with its trust indenture and agreement and purchase
agreement dated July 17, 1985.
\2\According to the terms of the Liquidating Indenture, the
proceeds form the sale of securities in each liquidating trust were
credited to an individual principal account for each liquidating
trust. The UIT trustee also collected the interest on the securities
as it became payable and credited such interest to a separate
interest account for each liquidating trust.
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7. The aggregate principal and interest distributions to unit
holders of those trusts which have no remaining unit holders was
approximately $55,907,487 and $1,996,427, respectively.
8. Each trust and liquidating trust paid or was charged the
expenses incurred by it in connection with the liquidation. The
aggregate amount of expenses borne by the trusts and liquidating trusts
was approximately $405,837. Such expenses included UIT trustee and
Evaluator fees, the cost of preparing tax returns and the final annual
report, and postage charges.
9. As of the date of the application, applicant had no assets,
liabilities, or unit holders. Applicant is not a party to any
litigation or administrative proceeding. Applicant is not engaged, nor
proposes to engage, in any business activities other than those
necessary for the winding-up of its affairs.
10. The existence of applicant under New York Law terminated upon
the termination of each trust. Each trust terminated upon the
distribution of all its assets.
For the SEC, by the Division of Investment Management, under
delegated authority.
Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 95-1284 Filed 1-18-95; 8:45 am]
BILLING CODE 8010-01-M
