fatdog1 wrote:I don't trade in that account.
I won't make any money for a secured creditor to get.
I consider it lost until I hear different.
the time of your money becoming your money again may be near:
GAIN Capital Group to Purchase Refco FX Customer Accounts
In case the client notice disappears from the target web, I'm quoting it here:
Important Client Notice
GAIN Capital Group to Purchase Refco FX Customer Accounts
Agreement Provides Recovery Upside to Continuing Customers;
Final Deal is Subject to Bankruptcy Court Approval
June 30, 2006
In a motion filed with the Bankruptcy Court today, Refco Inc. (OTC: RFXCQ) said it has proposed to enter an agreement with privately held GAIN Capital Group (GAIN), under which GAIN would acquire the Refco FXA (RFXA) retail customer account information and related assets. The proposed agreement provides RFXA customers with the potential to recover up to 100 percent of account balances. The proposed agreement is reflected in a non-binding term sheet that is subject to documentation and Bankruptcy Court approval, among other conditions.
RFXA currently has approximately 15,000 retail foreign exchange (forex) trading accounts. Upon the closing date of the proposed transaction, approximately 40 percent of RFXA's customers could receive a full recovery of their account balances, if they open an account with GAIN and execute at least one trade. Customers with larger deposits can also receive up to 100 percent recovery provided they meet certain trading thresholds, as outlined in the term sheet.
"We chose to work with GAIN for a number of reasons. GAIN is a leader in the industry and expressed early interest in the RFXA clients. They also have both the financial and operational resources necessary to help achieve a smooth transition for customers and to offer continued support for their ongoing trading needs. Just as important, GAIN and FOREX.com have an exemplary record with the National Futures Association (NFA) and, unlike RFXA, are regulated as a futures commission merchant. Their reputation in the industry speaks for itself," said Refco's Chief Restructuring Officer David Pauker.
"The proposed agreement benefits creditors by reducing a portion of the pre-petition customer claims against RFXA," continued Mr. Pauker. These claims, which include customer deposits, total over $100 million.
"At the same time, the proposed transaction with GAIN represents a much improved recovery for RFXA customers," Mr. Pauker said.
"We are pleased to be able to offer Refco FX clients the ability to recover up to 100 percent of their assets and at the same time to trade forex with a regulated firm," said GAIN's Chief Executive Officer Mark Galant. GAIN Capital Group and FOREX.com are registered with the National Futures Association (NFA) as a Futures Commission Merchant (NFA ID #0339826).
"In addition, if a RFXA customer chooses to opt into the program but does not recoup the full amount of their online account balance, they would still retain all their rights to the balance of their claim as a general unsecured creditor of Refco," Mr. Galant said.
Under the terms of the proposed agreement, GAIN will offer RFXA clients the option to open an account at FOREX.com, GAIN’s retail division. For RFXA clients who opt to do so, GAIN has agreed to immediately fund an amount equal to the lesser of the customer’s aggregate RFXA account balance or $150 per account when the client activates a new account. Clients with balances of $40 or less would be able to withdraw their funds immediately upon opening their account at FOREX.com. For customers with larger deposits, GAIN has agreed to reimburse customers up to their full account balance, payable in 25 percent increments every six months, provided they meet certain trading thresholds.
Mr. Pauker said that, at present, it is not expected that RFXA will have sufficient assets to pay its creditors in full. In addition to customer and trade liabilities, which exceed $140 million, RFXA is a guarantor of Refco's secured bank debt and unsecured bonds, which total in excess of $1 billion. RFXA has approximately $54 million of cash and securities, much of which is claimed as collateral by Refco’s secured lenders. RFXA is also owed money by some Refco affiliates, but the timing and amount of those recoveries is uncertain; Refco's lenders also assert claims to those receivables.
About GAIN Capital Group
GAIN Capital Group is a leading provider of foreign exchange services, including direct-access trading and asset management. Founded in 1999 by Wall Street veterans, GAIN Capital Group is one of the largest, most respected firms in the online forex industry, servicing clients from more than 140 countries and supporting trade volume in excess of $100 billion per month. Headquartered in Bedminster, New Jersey, the company operates sales offices in New York and Shanghai.
The company operates two full service web portals. FOREX.com (www.forex.com) services individual investors of all experience levels with a full-service trading platform, lower account minimums and extensive education and training. The company's flagship service, GAIN Capital (www.gaincapital.com) focuses on the needs of professional forex traders, including hedge funds and money managers.
GAIN Capital Group and FOREX.com are registered with the National Futures Association (NFA) as a Futures Commission Merchant (NFA ID #0339826).
For more information: www.forex.com
Cautionary Note Regarding Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of the 1995. In this press release, all statements other than statements of historical fact are forward looking statements that involve risks and uncertainties and actual results could differ. These forward-looking statements are based on assumptions that we have made in light of our experience and on our perceptions of historical events, current conditions, expected future developments and other factors we believe are appropriate under the circumstances. Although we believe that these forward-looking statements have a reasonable basis, you should be aware that numerous factors, including the outcome of the Audit Committee's investigation; our ability to obtain financing arrangement or alternatives; changes in domestic and international market conditions; competition; our ability to attract and retain customers; our relationships with introducing brokers; retention of our management team; our ability to manage our growth or integrate future acquisitions, our exposure to significant credit risks with respect to our customers, international operations and exchange membership requirements, the effectiveness of compliance and risk management methods, potential litigation or investigations, employee or introducing broker misconduct or errors, reputational harm, and changes in capital requirements, could cause actual results to differ materially from our expectations. Because of these factors, we caution that you should no place undue reliance on any of our forward-looking statements. Further, any forward looking statement speaks only as of today. It is impossible for us to predict how new events or developments may affect us. The Company disclaims any intention or obligation to update or revise any forward-looking statements, either to reflect new information or developments or for any other reason.
RISK WARNING: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. Before deciding to trade foreign exchange you should carefully consider your monetary objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your deposited funds and therefore you should not speculate with capital that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent advisor if you have any doubts. Past returns are not indicative of future results.
Refco F/X Associates LLC and its affiliates assume no responsibility for errors, inaccuracies or omissions in these materials. They do not warrant the accuracy or completeness of the information, text, graphics, links or other items contained within these materials. Refco F/X Associates LLC and its affiliates shall not be liable for any special, indirect, incidental, or consequential damages, including without limitation losses, lost revenues, or lost profits that may result from these materials. This email is not a solicitation to buy or sell currency. All information contained in this e-mail is strictly confidential and is only intended for use by the recipient. All e-mail sent to or from this address will be received by the Refco F/X Associates LLC corporate e-mail system and is subject to archival and review by someone other than the recipient. Refco F/X Associates LLC is compensated for its services through the spread between the bid/ask prices.