Posted on 10/17/2005 9:50:35 PM PDT by HAL9000
NEW YORK (Reuters) - Troubled commodities brokerage Refco Inc. said on Monday it had filed for bankruptcy protection as it struck a deal to sell its core futures brokerage business to a group of private equity investors for $768 million (439 million pounds).New York-based Refco said it and certain subsidiaries filed for bankruptcy protection on Monday as part of the memorandum of understanding with investors.
None of Refco's regulated subsidiaries -- its futures brokerage business, which is conducted through Refco LLC, Refco Overseas Ltd. and Refco Singapore Ltd, and its broker-dealer, Refco Securities LLC -- filed for bankruptcy protection, it said.
The investor group is led by private equity fund J.C. Flowers & Co. LLC and includes entities associated with Enstar Group Inc., Silver Point Capital, MatlinPatterson Global Advisers LLC and Texas Pacific Group.
Refco, which will have an option to keep up to 20 percent of the equity value of the entities being sold, said it expected to reach definitive agreements shortly but that there was no assurance a sale would happen.
The proposed purchase price equals 103 percent of the net capital of the business being acquired, Refco said in a statement issued late on Monday.
The company said Greenhill & Co. would continue as its financial adviser. The advisory services of Goldman Sachs Group were terminated on Monday upon the bankruptcy filing.
Poor Refco. I wonder what he got for it? How much is a used unit worth these days anyway?
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