GAIN Capital To Acquire Refco FX Accounts

I guess I only see a best case and worst case scenario happening at some point. Either everyone keeps their accounts in tact, or noone does, regardless of what the Duffy group is able to do. I don't forsee a select group of investors that are able to keep their accounts because they banded together and everyone else looses. Not when a court is involved.
I could be wrong.
Mike

 

You're the kind of guy that watches and finds fault with everything and contributes nothing. Then complains when there's a bad outcome. No chance of a good outcome if you do nothing, but that's ok...that's your style...it's clear. Good luck.

 

Nah, I don't think you are.

I think this is one of the crappiest "deals" I've ever seen ... you can keep your account, if you agree to churn it!

http://www.nypost.com/php/pfriendly..._twisted_over_sale_business_zachery_kouwe.htm
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Article

REFCO CUSTOMERS TWISTED OVER SALE
By ZACHERY KOUWE

July 13, 2006 -- Fuming customers of disgraced futures giant Refco, already unable to get the cash from their frozen accounts, are calling the shattered firm's move to sell their accounts to a rival brokerage a "raw deal."

Last week, Refco agreed to sell the accounts in its RefcoFX currency-trading division to New York futures broker GAIN Capital Group. The sale reduces the number of creditors scrambling to collect what's left of Refco's estate.

The 17,000 RefcoFX traders, who have about $103 million in the firm, plan to file an official protest today in the U.S. Bankruptcy Court in New York against the deal, according to Todd Duffy, an attorney representing the customers.

In return, GAIN has offered to deposit up to $150 in each trading account if customers make at least one trade.

Those with more than $150 in their accounts are angered because GAIN will only reimburse them if they cross certain trading thresholds - which customers have labeled unreasonable - over the next two years.


"If you have an account worth more than $25,000, you have to put more money on top of the $150 you get just to start trading, and then you have to make 240 trades per month for six months in order to qualify to get your own money back," Duffy said.

"It sounds to me like everybody wins but the customer," said Gail Butler, who has more than $50,000 tied up in a RefcoFX account. "How crazy is it that I have to jump through those hoops to get my money back in installments over two years interest-free. Just when I think they can't sink any lower, they do."

A letter from one customer to the RefcoFX Customer Coalition said, "Ruthless predators in the Refco case have preyed upon the poor, scattered flock of RefcoFX customers" since the company's collapse.

The letter asked: "How do you feel being first sheared and then ripped to the bone like a helpless little lamb?"

A spokeswoman for Refco said: "this was the best deal we could negotiate under the circumstances and we believe it offers the best chance of enhanced recoveries for those who participate. If someone is willing to provide better consideration to customers we expect we will hear from them."

The customers have been unable to withdraw their money since last October when ex-CEO Phillip Bennett was indicted for stealing $430 million and plunging the company into Chapter 11.

In its filing with the court, Refco said it doesn't believe that most "of the larger customers will elect to open an account with GAIN and meet the trading thresholds necessary to obtain a 100 percent recovery."

Judge Robert Drain of the U.S. Bankruptcy Court in New York is expected to hold a hearing on the RefcoFX sale on July 20.

zachery.kouwe@nypost.com

 

Ok thanks for the reply. Yes I agree that GAIN's proposal does require too many trades. For small accounts (less than $1000) it might be OK for people who don't mind topping off the $150.00.

 

Should be about 200.

Should be about 45 trades per month, still quite a few though.

 

Trainer,

You don't know me. You can't from a half dozen replys. I'm just being careful about where I through my money.
Mike

 

Being careful and being a nabob of negativism are different.

 

Free RefcoFX POC information.

 

A nabob of negativism? Maybe at first. But you are reading me all wrong.
Mike

 

I just sent following email to Mr. Todd Duffy, the lawyer to represent RefcoFX Customer Coalition:

Hello Mr. Duffy，
I am one of the account holders of Refcofx for retail currency exchange, the poor men/women club. I just heard that you are representing a group of us to fight for justice.
I was so hesitate to file POC(the "F/X Proof of Claim Form") as it classified me as ‘Unsecured Nonpriority Claim’. Currency exchange broker should be just like stock broker. My money deposited in the broker is my money, not the money I loaned to the broker. However, I feel so helpless and don’t have any other options. In the notice I got from Refco, it claimed: ‘I You must file a proof of claim form … The Debtors are not making an admission that you have a claim against Refco by sending you the F/X Proof of Claim Form.’ It sounds like that if I don’t file POC, I will give up my right to make a claim.
So eventually I filed POC. Does that mean I have admitted that I am an ‘Unsecured Nonpriority Claimer’ and not qualified to join your group any more?

The current situation is just like one of our fellow said that we are ‘being first sheared and then ripped to the bone like a helpless little lamb’. You are not only representing us to get our very own hard earned money back, but also fighting for justice, fighting to make United States and the world a better place.