Refco Inc. (OTC: RFXCQ) said today that the proposed agreement with privately held GAIN Capital Group (GAIN), under which GAIN was to acquire the Refco F/X Associates (RFXA) retail customer account information and related assets, has been jointly terminated.
While the parties had entered into a term sheet outlining the transaction, they were unable to reach terms on a final asset purchase agreement.
RFXA said that as a result of its inability to enter into a final asset purchase agreement, it plans to terminate its agreement with FXCM, the company that services RFXA's web-based platform, www.refcofx.com, and notify customers immediately that as of July 31, 2006, their RFXA accounts will be closed and locked from any further trading activity.
On June 30, 2006, RFXA announced that it had reached a preliminary agreement with GAIN Capital and that it had filed a motion in the Bankruptcy Court requesting that a hearing be held July 20, 2006 to consider the matter. That hearing was later adjourned to August 10 in order to allow the parties more time to document the transaction and give objecting parties more time to assess the benefits of the transaction.