CFTC Objects To Refco Unit’s Move Out Of Chapter 7

Law360, New York (March 20, 2006, 12:00 AM EST) -- Refco Inc’s proposal to shift its former unit out of Chapter 7 bankruptcy proceedings would set a bad precedent for commodity brokers, the Commodity Futures Trading Commission said in a filing.

The U.S. regulatory agency sought to stymie Refco’s attempts to convert the bankruptcy case of its Refco LLC unit into a Chapter 11 reorganization. The Refco unit has been bogged down in Chapter 7 proceedings since last November.

According to court papers filed in the U.S. Bankruptcy Court in Manhattan, the agency argued that Refco’s...
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