Refco Creditors Object To Bennett's Fee Bid

Law360, New York (March 8, 2006, 12:00 AM EST) -- The creditors’ committee of scandal-ridden Refco Inc. has asked a judge to reject a bid by former chief executive Phillip Bennett to pay for his own defense costs out of the pocket of the commodity broker's insurance company.

Bennett has requested that U.S. Specialty Insurance Co. disburse funds to cover his legal fees, but the committee argued in papers filed in a Manhattan bankruptcy court this week that Refco's bankruptcy estate would not benefit from having its insurers fork over the money.

“Every dollar that is...
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