NEW YORK, Dec. 26 /PRNewswire-FirstCall/ -- The Chapter 11 plan of Refco Inc. and certain of its Direct and Indirect Subsidiaries, including Refco Capital Markets, Ltd. and Refco F/X Associates, LLC, became effective today. The Chapter 11 plan had been confirmed by the U.S. Bankruptcy Court in New York on December 15. The effective date of the plan now permits the companies to complete an expeditious orderly wind-up of their businesses.
The Plan, as previously announced, is premised on a series of interdependent settlements and compromises in one of the most complex bankruptcy cases in history. Under the terms of the Plan, secured lenders who were owed $717.7 million were paid in full in cash prior to confirmation of the Plan; bondholders are expected to receive 83.4 cents on the dollar for their claims; Refco Capital Markets' securities customers are expected to receive approximately 85.6 cents on the dollar for their claims, and Refco Capital Markets' general unsecured creditors are expected to receive approximately 37.6 cents on the dollar for their claims. General unsecured creditors at the other Refco companies are expected to receive between 23 and 37.5 cents on the dollar for their claims. In addition, shareholders and certain creditors of the company will have the opportunity to participate in recoveries obtained by both the Litigation Trust and Private Actions Trust, which will hold certain litigation claims.
The effectiveness of the Plan enables Marc S. Kirschner, the Chapter 11 Trustee of Refco Capital Markets, Ltd., to make substantial interim distributions to creditors of Refco Capital Markets by year-end. The other Refco companies will be wound up by RJM, LLC, operated by Robert J. Manzo, and assisted by Capstone Advisory Group, LLC.
Refco and 23 of its affiliates filed for bankruptcy protection with the U.S. Bankruptcy Court for the Southern District of New York on October 17, 2005.
Cautionary Note Regarding Forward-Looking Statements
This press release may contain 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 materially from those set forth in the forward-looking statements. 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. Because of these factors, we caution that you should not 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.
