Refco gets court OK for online foreign-exchange trading unit bidding procedures

By Caroline Salls

Pittsburgh, Dec. 16 - Refco, Inc. obtained court approval of bidding procedures for the proposed sale of assets related to Refco's online foreign-exchange trading unit, according to a company news release.

The assets include more than 15,000 Refco FX Associates LLC retail client accounts and the 35% share of Forex Capital Markets LLC currently owned by Refco.

The order established noon ET on Jan. 20 as the deadline for interested parties to qualify as potential bidders and 10 a.m. ET on Jan. 23 as the deadline for the submission of a qualified bid package.

Potential bidders will be notified whether they are a qualified bidder by 10 a.m. ET on Jan. 25.

If there is more than one qualified bidder, an auction will be held on Jan. 26. The sale hearing is scheduled for Jan. 27.

"We are gratified with the court's approval of the bidding procedures and look forward to completing the sale process quickly," chief executive officer Robert Dangremond said in the release.

"We expect the sale to demonstrate interest among financial institutions and important entities in the online foreign-exchange trading business."

Refco, 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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