BofA Lobbies Court To Put Leash On Refco

Law360, New York (April 27, 2006, 12:00 AM EDT) -- Fearing that Refco Inc.’s spending has spiraled out of control, Bank of America has asked for a judge to intervene and set up a committee to curb the bankrupt futures broker’s skyrocketing expenditures.

The bank, an agent for Refco’s secured creditors, filed the request earlier this week after becoming alarmed by the roughly $42 million in fees and expenses Refco has incurred since filing for bankruptcy protection last October.

“[Refco] simply cannot long sustain professional costs of this magnitude,” said Bank of America in a court...
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