Refco Traders' Claims Don't Have Priority: Court

Law360, New York (January 24, 2008, 12:00 AM EST) -- Three clients of a subsidiary of bankrupt commodities broker Refco have again lost a bid for priority payment of theoretical profits they reaped trading in their accounts after Refco filed for Chapter 11.

A district court has affirmed a bankruptcy court's ruling that the traders were not entitled to administrative expense claims in connection with the bankruptcy of Refco Inc. and affiliated companies such as FXA.

Paul Palley, David Bilodeau and Mark Resnick, creditors whose pro se appeals were consolidated in July, "undoubtedly have experienced a...
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