[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