$506M Settlement Approved For Bawag, Refco

Law360, New York (June 30, 2006, 12:00 AM EDT) -- A bankruptcy court judge has approved the $506 million settlement between Austrian bank Bank Für Arbeit und Wirtschaft AG (BAWAG) and bankrupt futures broker Refco Inc. after postponing the ruling earlier this week to allow creditors to hammer out the language of the agreement.

U.S. bankruptcy court judge Robert Drain approved the settlement, saying that the money will “go a long way to filling a hole in the debtor's assets.”

The language of the settlement caused a division among Refco’s creditors, pitting the investment banks that...
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