NEW YORK, Jan. 20 /PRNewswire-FirstCall/ -- Refco Inc. said today that Judge Robert D. Drain of the U.S. Bankruptcy Court of the Southern District of New York approved on Wednesday, January 18 an order delaying the auction and related deadlines for the proposed sale of assets of Refco's online foreign-exchange trading unit, namely:
* More than 17,000 retail client accounts of Refco FX Associates LLC
(http://www.refcofx.com/); and
* 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 adjournment was sought to provide potential bidders with more time for due diligence and to schedule management meetings on the sale and came after agreement with the current "stalking horse" bidder FXCM and Refco's Official Committee of Unsecured Creditors and the Agent for its bank lending group.
Judge Drain's order establishes, among other things, the following new deadlines and dates:
* Latest date for interested parties to qualify as potential bidders and
access the virtual data room: February 10, at noon;
* Deadline for the submission of a qualified bid package: February 13,
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 February
15;
* If there is more than one "qualified bidder," an auction would be held
at the offices of Skadden, Arps, Slate, Meagher & Flom LLP on February
16 at 10:00 a.m.; and
* A hearing to approve the sale to the winning bidder will be held at the
U.S. Bankruptcy Court in lower Manhattan on February 17, 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 pleased that we were able to reach an agreement and obtain the Court's approval of the revised bidding timeline and look forward to holding a robust auction for these assets," said Harrison J. Goldin, Refco's chief executive officer.
If approved by the U.S. Bankruptcy Court, the transaction will ultimately preserve all the account balances in the transferred retail client accounts.
All those interested in taking part in the bidding process should contact Ashish Contractor at Greenhill & Co. at 212-389-1500.
Cautionary Note Regarding Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of the 1995. In this press release, all statements other than statements of historical fact are forward looking statements that involve risks and uncertainties and actual results could differ. These forward-looking statements are based on assumptions that we have made in light of our experience and on our perceptions of historical events, current conditions, expected future developments and other factors we believe are appropriate under the circumstances. Although we believe that these forward-looking statements have a reasonable basis, you should be aware that numerous factors, including the outcome of the Audit Committee's investigation; our ability to obtain financing arrangement or alternatives; changes in domestic and international market conditions; competition; our ability to attract and retain customers; our relationships with introducing brokers; retention of our management team; our ability to manage our growth or integrate future acquisitions, our exposure to significant credit risks with respect to our customers, international operations and exchange membership requirements, the effectiveness of compliance and risk management methods, potential litigation or investigations, employee or introducing broker misconduct or errors, reputational harm, and changes in capital requirements, could cause actual results to differ materially from our expectations. Because of these factors, we caution that you should no place undue reliance on any of our forward-looking statements. Further, any forward looking statement speaks only as of today. It is impossible for us to predict how new events or developments may affect us. The Company disclaims any intention or obligation to update or revise any forward-looking statements, either to reflect new information or developments or for any other reason.
FCMN Contact: Maggie_Whittington@sitrick.com
