Refco Can Send $300M From BAWAG Pact To Lenders

Law360, New York (October 6, 2006, 12:00 AM EDT) -- Despite objections from stockholders who felt they were getting short shrift, the federal judge overseeing Refco Inc.’s Chapter 11 case has given the company permission to put $300 million gleaned from a settlement with an Austrian bank toward a $642 million secured loan.

The settlement arose from a dispute with BAWAG P.S.K. Group—the bank that loaned erstwhile Refco chief executive Phillip Bennett $430 million, and allegedly abetted the accounting fraud scheme that led to Refco’s spectacular collapse when revealed in 2005.

In November 2005, BAWAG sued...
To view the full article, register now.

Law360 UK

UK Financial Services

Read Our Latest UK Legal News & Analysis

Financial Services Law360 UK and Insurance Law360 UK provide breaking news and in-depth analysis on U.K. and European Union regulation, enforcement, legislation, and litigation involving banks, investment firms, insurers, and more.