Bankruptcy Judge Tells Refco Unit To Liquidate

Law360, New York (March 15, 2006, 12:00 AM EST) -- On Tuesday, a federal court told the embattled commodities firm Refco that one of its offshore broker-dealer units must liquidate its assets separately from the company in order to expedite the company’s bankruptcy plan.

U.S. Bankruptcy Judge Robert Drain’s decisions in the case afford clients of the Refco Capital Markets unit more bargaining power in negotiating a larger share of the proceeds from a potential sell-off, while also placing more pressure on the parties involved to hurry up in devising an insolvency strategy for the company....
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