What happens to small REFCO customers $$$ ?

Sine most people have a tendacy of blowing out their account, Refco will pay out less.

 

RefcoFX Associates LLC filed a petition for relief under chapter 11 of the United States Bankruptcy Code with the United States Bankruptcy Court for the Southern District of New York on October 17, 2005 and is currently operating under Chapter 11 bankruptcy protection. Because of the chapter 11 filing, RefcoFX is unable at this time to continue accepting deposits in its customers' accounts and is unable to release funds back to its customers.

FXCM has indicated to RefcoFX an interest in acquiring RefcoFX's accounts with its customers in a transaction under which RefcoFX customers would be absorbed by FXCM or an affiliate, and RefcoFX has been in discussions with FXCM over the possibility of such a transaction. Completion of such a transaction would help expedite the repayment of customer funds by RefcoFX, and all RefcoFX customers would then have access to funds and accounts in the ordinary course of business. Any such transaction would be subject to approval of the Bankruptcy Court. There can be no assurance that Refco FX will be able to reach any agreement with FXCM or with any other entity for an acquisition and for the transfer of accounts or that the Bankruptcy Court would approve any such transaction. In addition, any such process, even if successful, is likely to take weeks or months to complete.

There can be no assurance as to the timing or amount of any payments to customers from their accounts at RefcoFX. In addition, there can be no assurance as to whether customers will be able to access any gains from any trading activity occurring after October 17, 2005. Any return of amounts in customer accounts is subject to the supervision and control of the United States Bankruptcy Court.

Customer service representatives are still available to assist you with live trading account questions.

Please understand that we cannot in any way offer any assurances or comment on current events surrounding the REFCO group of companies.



I wonder if the people who had losses after October 17, 2005 will not have to take them too????

 

lol, yea I'm sure they'll be benevolent on that, rofl

 

i have 500k with refco fx how much do you think i will loose ? Anyone

 

thats more a question for RCM's liquidators really, or the creditors committee (their appointed lawyer milbank?) but if that can give you some comfort, RFX debt paper has now substantially recovered and is trading around 70c. ...