Refco Proposes $642M Settlement With Senior Lenders

Law360, New York (September 8, 2006, 12:00 AM EDT) -- Refco Inc. has asked a federal bankruptcy court to approve a massive settlement with its secured lenders, a move that would release the debtors from liability related to fraud claims and save the estate $6 million a month in interest.

Under the proposed settlement, Refco would pay its senior lenders $642 million, plus pre and postpetition interest, as well as up to $13.5 million in lender’s fees.

In a motion filed Thursday seeking court approval for the deal, the debtors argued that the settlement served both...
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