Refco Gets A Break On Asset Sales

Law360, New York (February 1, 2006, 12:00 AM EST) -- A federal bankruptcy judge delivered some good news to embattled brokerage firm Refco, Inc. this week, after siding with the company twice in matters related to the ongoing division of its assets.

U.S. Bankruptcy Judge Robert Drain ruled that Refco was not automatically required to pay commodity brokerage firm Cargill Inc. between $67 million and $192 million, negating an earlier deal between the two companies.

Refco acquired Cargill last August, two months prior to filing for Chapter 11 bankruptcy protection.

In addition to the payments, which...
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