Securities Plaintiffs Object To Refco Bankruptcy Ruling

Law360, New York (August 22, 2006, 12:00 AM EDT) -- A court order permitting bankrupt futures brokerage Refco Inc. to pay off $127.5 million in intercompany claims has raised the ire of the lead plaintiffs in a securities suit pending against the company.

The plaintiffs filed an objection to the Aug. 10 order on Monday in the U.S. Bankruptcy Court for the Southern District of New York, claiming that the court erred in granting Refco’s motion.

The ruling allowed Refco subsidiary Refco Securities LLC to repay Refco Capital LLC about $127.5 million, a debt incurred as...
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