November 26, 2005 16:07 ET

REFCO OVERSEAS Ltd. Is Not Protected by November 14 US Bankruptcy Court Order, a REFCO Lawyer Said

The following Is Being Issued by Maître Frederik-Karel Canoy.

NEW YORK, NY -- (MARKET WIRE) -- November 26, 2005 -- The Order authorizing the REFCO bankrupt companies to sell the Regulated FCM business "does not contemplates at all REFCO OVERSEAS Ltd.," this company said in writing to the Paris High Court.

REFCO OVERSEAS Ltd. is not protected by Nov 14, 2005, US Bankruptcy Court Order, its French Lawyer said in a letter dated November 25, 2005, to French Judge Eric VIVIAN.

Said letter from law firm CABINET JEANTET ASSOCIES represented by Mr. Paul COCCHIELLO (ph +33 1 45 05 80 08), said to judge VIVIAN that it is "scandalous to assert that REFCO OVERSEAS Ltd. cannot be sued after the closing date regarding itself and /or its assets."

On November 14, 2005, Federal Judge Drain signed an order in the US Bankruptcy Court for the Southern District of New York, which completely and forever forbid from the closing date any claims or demands from any persons (except from their clients) against, among others, REFCO OVERSEAS Ltd., and/or its assets. This order said that all persons (except their clients) and entities holding any claim "arising under or out of, in connection with, or in any way relating to, the Debtors (the REFCO bankrupt companies) The Assets, the operation of the Debtors businesses before the Closing Date or the transfer of the Debtors' interests in the Assets to the Buyer, shall be and hereby and forever barred and stopped and permanently enjoined from asserting, prosecuting or otherwise pursuing against the Buyer, its property, its successors and assigns, its affiliates or the interests of the Debtors in such Assets, such persons or entities Interests or Claims."

REFCO OVERSEAS Ltd. is a wholly owned subsidiary of REFCO LLC, who filed today in the New York Bankruptcy court for the Southern District of New York a Chapter 7 Petition, for the purpose of facilitating the bulk transfer of its clients accounts, and its subsidiaries clients accounts including REFCO OVERSEAS Ltd. customers accounts, to the buyers.

These UK assets will be sold to Man Financial Inc. or its designee. New York-based Marathon Asset Management LLC Thursday said it had agreed to buy all REFCO OVERSEAS Ltd. clients' accounts.

Mr. Mark Slade who is currently the managing Director of REFCO OVERSEAS Ltd., will be the CEO of the new renamed entity, which will operate all the REFCO OVERSEAS Ltd. accounts. Mr. Mark Slade is a defendant with REFCO OVERSEAS Ltd. and others including Mr. Thomas H. Lee and Mr. Scott A. Schoen in a criminal probe in Paris, and in a $1.4 billion fraud lawsuit in New York.

This false statement dated November 25, 2005, from REFCO OVERSEAS Ltd. to the Paris High Court is apparently a new fraud which will lead to a new criminal probe. REFCO OVERSEAS Ltd. has asked the French court to unfreeze its French assets including some EUR5.1 million in BNP PARIBAS that it says is clients' money.

Mr. Paul COCCHIELLO representing CABINET JEANTET ASSOCIES is the target of another criminal investigation in Paris from investigating judge Nathalie LERMINIER.

He has been fined in the same matter by the Paris Bar on July 2004 for wrongdoings before the President of the Paris Commercial Court.

See also:
In no way does this press release presume to pronounce judgment on any current or future legal proceedings. Its sole purpose is to inform the Public of the current legal proceedings.

Contact Information

  • Press Contact:
    Maître Frederik-Karel Canoy
    Attorney at Law
    Ph +33 (0)6 13 80 22 21
    +33 (0)1 43 98 96 36
    fax +33 (0)1 43 98 23 18