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Refco futures brokerage sale appealed; trust asks court to confirm sale order while Paris assets frozen
By Caroline Salls
Pittsburgh, Nov. 28 - Refco, Inc.'s sale of its regulated commodities futures brokerage business was appealed Monday by The Bankruptcy Trust of Gerard Sillam, according to a filing with the U.S. Bankruptcy Court for the Southern District of New York.
Also on Monday, the trust filed an emergency motion to affirm and conform the sale order in connection with the court's findings concerning Refco Overseas Ltd. and its assets.
According to the emergency motion, before the sale hearing, the trust had already begun litigation in the Commercial Court of Paris against Refco Overseas and Refco Securities SA, under which the Paris high court issued an order freezing up to €30 million of Refco Overseas' assets in France.
In particular, the trust said it had serious concerns that the acquisition agreement, which said its inclusion of non-debtor Refco Overseas was made without limitation, stipulation or any definition or language of exclusion about the frozen assets.
The trust said this may have been an attempt to circumvent or disregard the Paris court's standing injunction freezing the assets.
The trust said in the motion that it does not oppose the sale, but seeks to preserve the "status quo - that being the non-closing sale status of Refco Overseas and its assets (including but not limited to the French assets) pending the Paris high court's imminent ruling."
If the Paris court overturns the freezing of the assets, the trust said it would withdraw the motion.
Refco, a New York-based commodities brokerage company, filed for bankruptcy on Oct. 17. Its Chapter 11 case number is 05-60006.
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