Refco Files for Chapter 11

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Troubled commodities broker Refco Inc. filed for Chapter 11 bankruptcy protection and said it had reached a preliminary deal to sell its core futures brokerage business to a group of private investors for $768 million.


The consortium of would-be buyers for Refco LLC is led by private buyout firm J.C. Flowers & Co. LLC, which specializes in taking distressed financial companies and either turning them around or selling the pieces to other companies. As part of the agreement, Refco said Monday it will have the option to retain up to 20 percent of the equity value of the entities being sold.


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