Flowers pulls out following fee restriction
The bidding for units of Refco got underway last week after
a judge ruled that an auction for the bankrupt firm would be
settled in early November.
Last week, a US bankruptcy court judge ruling forced early
front runner JC Flowers to drop out, which opening the door for
a host of firms to battle for Refco or parts of the firm.
An auction was set for 9 November with bids due by 4
November. A hearing on the sale of Refco would then take place
on 10 November with Refco's current board deciding the winner.
The court will still sign off on any deal.
Flowers withdrew from the process after the judge said the
private equity firm would have to slash its break-up fee to $5m
from its initial price of $20m. Flowers initially bid $768m for
various Refco divisions.
This article is available exclusively to subscribers
Please log in to continue reading.
Not yet a subscriber?
Click here to take a free trial.
Already have an account? |
Please fill in your details below and a customer service representative will contact you.