Court Tosses Bid To Move Refco Unit To Chapter 11

Law360, New York (May 2, 2006, 12:00 AM EDT) -- A bankruptcy judge rejected a bid Tuesday to convert Refco Inc.’s former flagship unit, Refco LLC, into a Chapter 11 bankruptcy, citing that the move could lead to additional customer claims that could potentially drain estimated assets of approximately $800 million.

Siding with the U.S. government and a former U.S. Trustee who has resigned, Judge Robert Drain of the U.S. Bankruptcy Court in Manhattan decided that the case will stay parked in Chapter 7 and brushed aside claims that the Chapter 7 proceeding was more expensive...
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