We use cookies on this site to enable your digital experience. By continuing to use this site, you are agreeing to our cookie policy. close

Refco Creditors Take Aim At Bennett Financier BAWAG

Law360 (April 25, 2006, 12:00 AM EDT) -- Seeking more than $1.3 billion, unsecured creditors for Refco Inc. are suing Austrian bank Bawag PSK Group, accusing the financier of helping propel the futures broker into bankruptcy through a series of fraudulent loans to Refco’s embattled former chief.

Central to the allegations is a $420 million loan from Bawag to former Refco chief executive officer Phillip R. Bennett in October 2005, just days before Refco stunned Wall Street with its massive insolvency.

In an initial victory for the creditors, Judge Robert D. Drain, with the...
To view the full article, register now.
Law360 Pro Say Podcast
Check out Law360's new podcast, Pro Say, which offers a weekly recap of both the biggest stories and hidden gems from the world of law.