Refco Bankruptcy May Hurt Business, PlusFunds Claims

Law360, New York (February 10, 2006, 12:00 AM EST) -- Investment firm PlusFunds, a participant in the Refco bankruptcy proceedings, may be forced to suspend some of its trading operations due to a bankruptcy court order preventing the brokerage from paying some of its investment managers.

A court order stemming from the Refco bankruptcy has kept PlusFunds subsidiary Sphinx Managed Futures Fund from paying investment managers, the company said in a court filing.

The order prohibits PlusFunds from spending more than $655,000 on management fees before a trial between PlusFunds and Refco’s creditors begins.

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