Refco seeks court OK to sell Refco Hong Kong stock, resell Refco Global Finance Bank Frick equity

By Caroline Salls

Pittsburgh, March 13 - Refco, Inc. requested court approval to sell the stock of non-debtor affiliate Refco Hong Kong Ltd. and to resell Refco Global Finance Ltd.'s equity interest in Bank Frick & Co. Aktiengesellschaft, a Liechtenstein joint stock company, according to Friday filings with the U.S. Bankruptcy Court for the Southern District of New York.

The company wants to sell 100 ordinary shares and 3,250 ordinary A shares of debtor Refco Global Futures, LLC's shares in subsidiary Refco Hong Kong Ltd. to Admis Holding Co., Inc.

The purchase price for the shares will be $1.5 million, plus the net asset value of Refco Hong Kong, with a $9.1 million total sale price.

Before Refco filed for bankruptcy, Refco Hong Kong held segregated funds of about $30 million on behalf of 900 customers, and currently, Refco Hong Kong holds $15.5 million in segregated funds on behalf of 400 customers.

Although Refco Hong Kong continues to trade normally, the motion said it is closely monitored by the Securities and Futures Commission of Hong Kong, which expects that Refco Hong Kong will be sold in the near future.

According to the motion, if Refco Hong Kong is not sold within the next one to two months, the SFC may require it to wind down.

A hearing on both sales is scheduled for March 30.

Under the Bank Frick purchase agreement, Refco Global Finance will transfer its 80 shares in Bank Frick to the bank in exchange for about $918,000.

According to the motion, the resale price represents a 50% return on Refco Global Finance's investment in less than a three-year period.

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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