Refco, LLC

Client

Refco, LLC prior to filing for bankruptcy in November 2005, was one of the world’s largest Futures Commission Merchants with a focus in options and commodities trading with over $5 billion in assets.

Challenge

In October 2005, an internal review led to discovery of approximately $430 million in previously undisclosed loans related to Refco’s former Chief Executive Officer and Chairman. This caused severe financial distress ultimately leading to Refco, LLC filing for Chapter 7 bankruptcy on November 25, 2005. On the petition date, Refco, LLC consummated the sale of substantially all assets to Man Financial in a court approved transaction. Also on the petition date, an interim Chapter 7 Trustee was appointed. Following Refco, LLC’s 341 Hearing in April 2006, the interim Trustee became the permanent Trustee. The Trustee engaged Bridge as financial advisor to assist in the filing of Monthly Operating Reports (“MORs”), the review of intercompany balances with the Chapter 11 Debtor entities and such other financial analysis and support as the Trustee requests.

Solution

Bridge assembled a seasoned team of financial professionals. This team analyzed the Debtors financial circumstances to respond to questions and participate in the oversight and management of financial matters related to the Debtor for the Trustee.

Results

Bridge completed all Monthly Operating Reports required by the United States Trustee. In addition, Bridge continues to assist the Trustee in reconciling claims against the estate, realizing value for assets and collecting proceeds for receivables and disposing of remaining assets.