Customers Cringe As $127.5M Refco Deal Goes Through

Law360, New York (August 11, 2006, 12:00 AM EDT) -- A still-solvent unit of bankrupt commodities brokerage Refco Inc. will pay $127.5 million to the company’s creditors after a judge approved the deal, writing off concerns that the unit should save the money to pay off class action lawsuits.

The unit—embattled Refco Securities LLC—will fund the deal as it winds down its operations out of court. The unit is accused of funneling customers’ funds to another Refco subsidiary in Bermuda in order to hide the cash from financial ruin that engulfed Refco Inc. late last year....
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