U.S. Trustee Defends Move To Split Refco Creditors

Law360, New York (August 8, 2006, 12:00 AM EDT) -- In the first public explanation of her decision to split Refco Inc.’s unsecured creditors committee, U.S. Trustee Diana G. Adams said on Tuesday that the move had been necessary to salvage a “bitterly divided committee.”

The controversial move to expel six members of the nine-member committee was not intended to “disenfranchise” the unsecured creditors, Adams said. She asked the judge not to reverse her decision.

Adams said that though Refco’s creditors committee had helped lead investigations resulting in the recovery of nearly $900 million that were...
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