Refco futures sold, parent bankrupt

Refco and 23 of its subsidiaries filed for Chapter 11 protection in US Bankruptcy Court in Manhattan on 18 October after the company announced a tentative agreement that it would sell its futures business to a group of private equity firms led by JC Flowers for $768m.

Refco said in a statement that the proposed purchase price of $768m equals 103% of the net capital of the acquired businesses, valuing the purchase at just $20m. The firm will also have the option to retain up to 20% of the equity value of...