Refco Creditors Committee To Probe IPO Underwriters

Law360, New York (March 24, 2006, 12:00 AM EST) -- Despite earlier protests from its underwriters, Refco’s creditors committee can review records from banks that underwrote the company’s initial public offering just two months before Refco fell into bankruptcy, a judge decided Thursday.

Judge Robert Drain in the U.S. Bankruptcy Court in Manhattan ruled that the committee was acting responsibly by conducting a thorough investigation of the events that happened in the Refco case before bringing any claim against the underwriters.

The creditors committee had asked the bankruptcy court permission to examine the accounting records of...
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