-Rogers Raw Materials Fund - $287,436,182 -Rogers International Raw Materials - $75,213,814 www.bankrupt.com/refco.txt
Looks like a strong argument against the "self regulated" (read no regulation) model for hedge funds. I can see why people are worried about them. If a fund takes down a clearing firm (or some embezzlement occurs) then customer funds on margin in the same pool are also at risk. This makes things like IB's universal account more attractive for futures traders with large amounts of money on deposit.
#1 link, thks setharb! so... abadi & co's a creditor hey? Abadi & Co. Securities $28,046,904 .... mhhhh
Thanks for the link. From that newsletter I also looked at the memorandum of understanding between Refco and JC Flowers. I marvel at how beautifully the purchasing memorandum is done, the 2.8% breakup fee and the 20M overbid condition are clearly targeted at preventing any additional bidders. The fact that they did all of this in 2-3 days is simply beautiful, the Kirkland and Skadden lawyers earned their fees. Also, despite Sexton / Murphy's presence, Scott Schoen signed for both Refco and Refco Futures. So it is clear that TH Lee wants to get out of the Refco situation as quick as possible. I am betting that TH Lee rather lose the $450M he still has Refco than damaging his ability to raise the $7.5B new fund.
Exactly! And like I said earlier . . . this is gonna be a lay-up for Chris Flowers compared to the Long-Term Credit Bank of Japan Ltd.These guys really have their act together!
many thks for yr earlier response rufus_4000, yep, have client accts as well, not looking at credit wrap type structure presently, but yr response gives me some good pointers as to the possible purpose of some clauses i particularly dislike in my 'prime' 's draft contract... cheers!
I just heard from a 'decent' source of mine that Refco Capital Markets clients will be made whole. The assets and liabilities match up. Now, we will see soon enough. I don't know for sure if this is correct. But Refco Capital Markets is a separate entity and it was well run.
any idea what's up with refco private client (formerly lind waldock)? i have a little bit of change in that one.
I found that breakup fee interesting. But probably just there to scare away bidders. It has been years since I even thought about bankruptcy law. But, if trustee can go back and undue deals that have already been consumated. I suspect a trustee could disallow the break up fee if the asset went to a different bidder.