Refco to sell regulated business via Chapter 7

New York, Nov. 9 - Refco Inc. plans to sell its regulated business through a Chapter 7 proceeding.

"For Refco LLC, our regulated futures commission merchant, this is merely the most efficient procedure for immediately transferring Refco's open customer accounts in bulk to an appropriate buyer of Refco's business that will be the result of a transaction to be approved by the court," the company said in a news release.

"This action will expedite the process and quickly move accounts that will continue to be handled by their same brokers on the same platforms on which they currently trade.

"This situation does not mean that customer accounts are being liquidated or that employees or brokers are losing their jobs. This is the most efficient mechanism for implementing the sale of Refco's business as a going concern."

Refco, Inc., a New York-based commodities brokerage company, filed for bankruptcy on Oct. 17 in the U.S. Bankruptcy Court for the Southern District of New York. Its Chapter 11 case number is 05-60006.

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