Refco Meltdown fka RFC

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Refco Bankruptcy Plan Takes Effect
Tuesday December 26, 5:31 pm ET
Refco's Plan to Exit Chapter 11 Bankruptcy Takes Effect


NEW YORK (AP) -- Refco Inc., which previously provided trade-clearing and brokerage services, on Tuesday said its plan to exit Chapter 11 bankruptcy took effect.
The U.S. Bankruptcy Court in New York approved the plan on Dec. 15. Refco essentially dissolved itself during the bankruptcy by selling off its operations or eliminating them altogether.

Terms of the exit plan called for the company to pay secured lenders the $717.7 million they were owed in cash. Bondholders are expected to receive 83.4 cents on the dollar for their claims. Refco Capital Markets securities customers are expected to get about 85.6 cents on the dollar for their claims.

Unsecured creditors will receive substantially less under the plan -- between 23 cents and 37.6 cents on the dollar.

Refco originally sought bankruptcy protection in October 2005, as the company collapsed during an accounting scandal.