Final Refco Subsidiary to Enter Chapter 7 By MICHAEL J. MARTINEZ, AP Business Writer
Wed Nov 9, 6:32 PM ET
NEW YORK - Refco Inc. hopes to put its final solvent subsidiary, commodities broker Refco LLC, into Chapter 7 bankruptcy to make the company more attractive to potential buyers, the company said in court filings Wednesday.
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As four would-be buyers huddled in a Times Square law firm to bid on Refco's remains, the company asked the U.S. Bankruptcy Court in Manhattan to change the terms of the auction agreement to allow the winning bidder to liquidate the subsidiary — a move that would allow the winner to fold Refco's profitable trading accounts into the winner's business within days.
Under the current terms, Refco LLC would have been purchased as an entire company, instead of liquidated assets, and consolidating those accounts into an existing company would have made for numerous regulatory hurdles.
Refco was due to announce the winning bid in bankruptcy court at 10 a.m. EST Thursday. The bid must be approved by the court, as must the request to allow Refco to file Chapter 7.
The auction at Skadden Arps Slate Meager & Flom LLP began Wednesday morning and stretched into the evening hours, with the court filing late Wednesday apparently removing a roadblock for at least some of the potential acquirers.
"During the negotiations, the potential bidders expressed concerns with respect to the structure of the transaction," Refco said in the filing. "As the negotiations continued, it became increasingly clear that the sellers would obtain the maximum value of (Refco) by invoking the protections afforded under ... Chapter 7."
Refco filed for bankruptcy on Oct. 17, just eight days after it announced a $420 million shortfall in its books. Refco Chief Executive Phillip Bennett took responsibility for the money, taking out a loan to pay it back just before the company placed him on indefinite leave Oct. 10.
Bennett was arrested the following evening and charged with securities fraud in U.S. District Court in Manhattan. He remains free on a $50 million bond. The questionable accounting led Refco's customers to flee the company in droves, resulting in a crippling loss of assets that ultimately forced bankruptcy.
Private buyout firm J.C. Flowers & Co. LLP had tentatively agreed to purchase pieces of Refco for $768 million, but dropped the bid after the bankruptcy court reduced its breakup fee should Refco be purchased by someone else.
Other bidders that have announced their intentions include Refco competitor Interactive Brokers Group LLC, a consortium headed by Dubai Investment Group and Man Financial, a subsidiary of British company Man Group PLC.
Chicago-based futures and options brokerage Alaron Trading Corp. said Wednesday that its bid failed to qualify. The company said it was unclear why its bid failed.
如果 Refco LLC 也进入破产，那么所有各地REFCO的资产是否也有这个倾向？？？ |
樓主: everok
發表於 2005-11-1 19:07:18
發表於 2005-11-1 19:31:32
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