Refco drops plan for immediate lawsuit on claims |

Refco drops plan for immediate lawsuit on claims

Associated Press

NEW YORK – Refco Inc. on Friday dropped plans to collect lawsuits by its customers into a class action, saying that there were other ways of dealing with claims totaling in excess of $1.8 billion.Refco Inc. was responding to objections filed by numerous customers of Refco Capital Markets Ltd., the unregulated unit of Refco Inc., which put a moratorium on customer withdrawals just days before the company’s bankruptcy filing Oct. 17.In a court hearing before federal bankruptcy Judge Robert Drain, Anthony Clark, an attorney for Refco Inc., said Refco’s units “badly need breathing room” from litigation. He said that 18 pending lawsuits over customer property had already cost the estate more than $1 million in four weeks.With the consent of the representatives of the larger customers in court, Drain approved the proposal that all litigation over the customers’ accounts be stayed until Dec. 8.Numerous customers, including Inter Financial Services Ltd., with $150 million tied up in the debtors’ estate, and investment guru Jim Rogers’ funds, with a $362 million claim, were heard by Judge Drain.Vail, Colorado

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