Global Brokerage Inc. (GLBR)

[tcr7309]

I'm only going to make one post, way to busy for this.

Kraken is absolutely correct. This happens all the time, in a distressed scenario like fxcm was in. The attorneys know exactly how to structure the deal to protect both parties. The newco was put in place to transfer assets without liabilities of the parent until the terms of the contract are met, ie, the CASH of 300mil is paid in full. Then the assets are transferred back to the parent and the shell is left empty or the shell may have some residual value. Bottom line, if fxcm meets the requirements of the loan agreement via sale of non core assets or how ever they pay the loan off the terms of the deal are met.

One more tidbit for those who don't understand jeffries/luk. They are not a predator, and they know their industry. They made a good deal to save one of their own and are getting compensated well for it. They are not out to ruin fxcm nor are they trying to steal their assets. I worked very closely with them in a past life and they are one company that is on the up and up. No trickery in the contract details!

I don't know if the shorts are on the right side of the trade short term or not. Many of the retail shorts basically read the citi and barclays analysis and said oh it must be going to a dollar because citi says so. Please remember that citi is notorious for helping hedge funds short companies that are weak like fxcm was. I will give you shorts some advice, stay short but hedge your bets by buying the augie 2.5/calls. you will thank me later.