Refco foreign exchange business stakeholder Forex objects to auction postponement request

By Caroline Salls

Pittsburgh, Jan. 18 - Refco, Inc.'s foreign exchange business controlling stakeholder Forex Capital Markets LLC objected to the official committee of unsecured creditors and administrative agent Bank of America, NA's motion to postpone the auction and extend the bid deadline for the proposed more than $110 million sale of Refco F/X Associates, LLC's 15,000-plus retail client accounts and Refco's 35% share in Forex.

According to the objection filed Wednesday with the U.S. Bankruptcy Court for the Southern District of New York, Forex "vigorously disputes the allegation that it was slow to provide information" to the data room for potential bidders.

Forex said the positions it took on information requests were extremely reasonable and it provided an enormous amount of information in response to piecemeal information requests.

Forex also said it provided the information more quickly that it would on a normal basis, while trying to run its day-to-day business, trying to raise the money required to close the acquisition of Refco's 35% share and while trying to raise money to meet its capital needs.

The company called the motion an attempt to make a scapegoat out of Forex and demand even more money from it.

In the motion, the committee and agent said an at least two-week postponement is necessary because of a significant delay caused by Forex.

The motion said that although the company's intent was to have all necessary information posted in the data room on Jan. 2, for various reasons it was not available until Jan. 14 and 15.

Refco, a New York-based commodities brokerage company, filed for bankruptcy on Oct. 17. Its Chapter 11 case number is 05-60006.

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