Refco Creditors Take Aim At Bennett Financier BAWAG

Law360, New York (April 25, 2006, 12:00 AM EDT) -- Seeking more than $1.3 billion, unsecured creditors for Refco Inc. are suing Austrian bank Bawag PSK Group, accusing the financier of helping propel the futures broker into bankruptcy through a series of fraudulent loans to Refco’s embattled former chief.

Central to the allegations is a $420 million loan from Bawag to former Refco chief executive officer Phillip R. Bennett in October 2005, just days before Refco stunned Wall Street with its massive insolvency.

In an initial victory for the creditors, Judge Robert D. Drain, with the...
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