U.S. Trustee Guts Refco Creditor Committee

Law360, New York (August 3, 2006, 12:00 AM EDT) -- Claimants of bankrupt commodities broker Refco Inc. are crying foul after the U.S. Trustee overseeing the Chapter 11 case cut the official committee of unsecured creditors down from nine members to three, a move that critics say may undermine approval of the company’s reorganization plan.

In an emergency motion filed Wednesday, five of the six parties removed from the committee asked U.S. Bankruptcy Judge Robert D. Drain to issue an order staying the U.S. Trustee’s decision for 45 days pending a review, to reverse the Trustee’s...
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