Hedge Funds Object To Refco Payment Plan

Law360, New York (September 20, 2006, 12:00 AM EDT) -- A group of hedge funds counting on a generous return from investments made in Refco Inc. has called for the bankruptcy court to stop the commodities brokerage from repaying lenders $642 million.

The ad hoc equity committee, including JMB Capital Partners, Lonestar Capital Management LLC and other hedge funds, owns more than 25% of Refco’s stock, which was bought following Refco’s collapse into bankruptcy in October 2005, according to court documents filed Wednesday in the U.S. Bankruptcy Court for the Southern District of New York....
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