Refco receives approval for online FX asset sell-off

Source: Refco

Refco Inc. (OTC: RFXCQ) announced today that it has received Court approval of bidding procedures for the proposed sale of assets related to Refco's online foreign-exchange trading unit, namely:

  • The sale of more than 15,000 retail client accounts of Refco FX Associates LLC
  • The 35% share of Forex Capital Markets LLC (FXCM) currently owned by Refco. FXCM, a Futures Commission Merchant registered with the CFTC and a member of the National Futures Association, provides a foreign currency trading platform and execution services to retail investors.

    The order establishes, among other things, the following deadlines and procedures:

    • Deadline for the interested parties to qualify as potential bidders and access the virtual data room: January 20th at noon
    • Deadline for the submission of a qualified bid package: January 23rd, at 10:00 a.m.
    • Potential bidders will be notified whether they are a "qualified bidder" under the Bidding Procedures Order by 10:00 a.m. on January 25th
    • If there is more than one "qualified bidder," an auction would be held at the offices of Skadden, Arps, Slate, Meagher & Flom LLP on January 26th at 10:00 a.m.
    • A hearing to approve the sale to the winning bidder will be held at the U.S. Bankruptcy Court in lower Manhattan on January 27th, at 10:00 a.m.

    The bidding procedures for the sale of Refco's retail foreign exchange assets are similar to those employed in the sale of the assets of Refco LLC, the company's regulated commodity futures business, which was completed on November 25.

    "We are gratified with the court's approval of the bidding procedures and look forward to completing the sale process quickly," said Robert Dangremond, Refco's chief executive officer.

    "We expect the sale to demonstrate interest among financial institutions and important entities in the online foreign-exchange trading business and are convinced the process will demonstrate once again the value placed on the Refco franchise by those in the industry," Mr. Dangremond said.
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