Refco creditors look forward to pay-out as Chapter 11 becomes effective

Refco finally fell into Chapter 11 yesterday. The Chapter 11 of Refco and its subsidiaries - including Refco Capital Markets, Ltd. and Refco F/X Associates LLC - became effective yesterday. The Chapter 11 plan had been confirmed by the US Bankruptcy Court in New York on 15 December. The effective date of the plan

By None

Refco finally fell into Chapter 11 yesterday. The Chapter 11 of Refco and its

subsidiaries – including Refco Capital Markets, Ltd. and Refco F/X Associates

LLC – became effective yesterday.

The Chapter

11 plan had been confirmed by the US Bankruptcy Court in New York on

15 December. The effective date of the plan now permits the companies to

complete an expeditious orderly wind-up of their businesses.

The wind-up

plan is premised on a series of interdependent settlements and compromises in

one of the most complex bankruptcy cases in history. Under the terms of the

Plan, secured lenders who were owed $717.7 million were paid in full in cash

prior to confirmation of the plan; bondholders are expected to receive 83.4

cents on the dollar for their claims; Refco Capital Markets’ securities

customers are expected to receive approximately 85.6 cents on the dollar for

their claims, and Refco Capital Markets’ general unsecured creditors are

expected to receive approximately 37.6 cents on the dollar for their claims.

General unsecured creditors at the other Refco companies are expected to receive

between 23 and 37.5 cents on the dollar for their claims. In addition, shareholders

and certain creditors of the company will have the opportunity to participate

in recoveries obtained by both the Litigation Trust and Private Actions Trust,

which will hold certain litigation claims.

The

effectiveness of the plan has enabled Marc S. Kirschner, the Chapter 11 Trustee

of Refco Capital Markets, Ltd., to make substantial interim distributions to

creditors of Refco Capital Markets by year-end. The other Refco companies will

be wound up by RJM, LLC, operated by Robert J. Manzo, and assisted by Capstone

Advisory Group, LLC.

Refco and

23 of its affiliates filed for bankruptcy protection with the US Bankruptcy

Court for the Southern District of New York on 17 October 2005.

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