Refco granted court OK of $4.6 million Refco Japan share sale, $1.54 million Partners Capital repurchase

By Caroline Salls

Pittsburgh, March 17 - Refco Inc. debtor Refco Global Holdings, LLC obtained court approval to sell 3,200 common shares of Refco Japan Ltd. to VC Square Toushi Kikin Uneikumiai Co. Ltd., Encourage Entrepreneurship Fund LP, VC Square Co. Ltd. and Hachimine Noboru Office Co. Ltd. for $4.6 million, according to a Friday filing with the U.S. Bankruptcy Court for the Southern District of New York.

Refco Japan, a wholly owned subsidiary of debtor Refco Global Holdings, holds a securities brokering license with the Japan Financial Securities Association but has no clearing membership or customers and holds no customer funds.

Refco Japan historically marketed to institutional customers and referred customers to its Refco affiliate in Singapore.

In October, when news of alleged fraud at Refco Inc. surfaced, institutional clients stopped conducting business with Refco Japan, and, as a result, Refco Japan has not been able to trade or earn income from referrals.

In addition, Refco obtained court approval to sell Refco Group Ltd., LLC's 14.29% equity interest in Partners Capital Investment Group, LLC back to stalking horse bidder Partners Capital for $1.54 million.

According to the motion, based upon the results of Refco's analysis and its ongoing and future business prospects, the company's management and financial advisers have concluded that the best way to maximize value for the estates is to sell the shares under the purchase agreement, avoiding a liquidation sale or sale at a depressed price.

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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