Refco Trustee's Objections "Lone Voice In Wilderness"

Law360, New York (August 30, 2006, 12:00 AM EDT) -- A $2.3 billion settlement proposed by the Chapter 11 Trustee for Refco Inc.’s offshore unit will massively overpay claimants and delay the looming liquidation of Refco’s former flagship unit, according to an objection filed this week by a Chapter 7 Trustee.

Albert Togut, Chapter 7 Trustee for Refco LLC, said in court documents that his warnings about the settlement were falling on deaf ears, making his objection “a lone voice in the wilderness.”

Togut warned that the proposed deal between customers and Refco’s unregulated Bermuda-based unit,...
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