Judge Approves $263M Refco Settlement

Law360, New York (June 8, 2006, 12:00 AM EDT) -- A U.S. bankruptcy court has approved the $263 million settlement between insolvent futures broker Refco Inc. and collapsing hedge fund Sphinx Managed Futures Fund, ignoring multiple objections and chastising those who attempted to thwart the deal.

“Litigation over the committee's motion to enter into the settlement agreement has considerably crossed the line into a complete misunderstanding of the law of bankruptcy courts considering settlement agreements,” said Judge Robert Drain of the U.S. Bankruptcy Court for the Southern District of New York.

Sphinx investors had objected to...
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