Refco debtor requests court OK of $4.6 million Refco Japan common share sale

By Caroline Salls

Pittsburgh, Feb. 23 - Refco Inc. debtor Refco Global Holdings, LLC requested court approval for the proposed $4.6 million sale of 3,200 common shares of Refco Japan Ltd. to VC Square Toushi Kikin Uneikumiai Co. Ltd., Encourage Entrepreneurship Fund LP, VC Square Co. Ltd. and Hachimine Noboru Office Co. Ltd.

According to the motion filed Wednesday with the U.S. Bankruptcy Court for the Southern District of New York, Refco Japan, a wholly owned subsidiary of debtor Refco Global Holdings, holds a securities brokering license with the Japan Financial Securities Association but has no clearing membership or customers and holds no customer funds.

Refco Japan historically marketed to institutional customers and referred customers to its Refco affiliate in Singapore.

In October, when news of the alleged fraud at Refco Inc. surfaced, institutional clients stopped conducting business with Refco Japan, and, as a result, Refco Japan has not been able to trade or earn income from referrals.

A hearing is scheduled for March 14.

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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