Refco granted third extension to securities sale stoppage; now ends Dec. 15

By Caroline Salls

Pittsburgh, Dec. 8 - Refco, Inc. and the official committee of unsecured creditors for its Chapter 11 case obtained court approval for a third extension to a stipulation agreement that prohibits the sale, transfer or liquidation of securities held by Refco Capital Markets, Ltd., according to a Thursday filing with the U.S. Bankruptcy Court for the Southern District of New York.

The restriction is now in force until to Dec. 15. The agreement had previously been extended to Dec. 8 from Nov. 18.

According to previous court documents, various parties have raised concerns about the alleged liquidation, sale or transfer of the Refco Capital Markets securities.

The agreement reflects an attempt to allow the company and the committee to consensually resolve any outstanding issues in connection with the allegations.

According to the amended order, Refco and the committee are still seeking to resolve the issues and, in turn, felt the extension was warranted.

Non-debtor subsidiary Refco Securities, LLC has also agreed to abide by the agreement in connection with any securities it received from Refco Capital Markets.

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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