GAIN Capital taking over 15,000 retail Refco FX Accounts

[Billy]

NEW YORK, June 30 /PRNewswire-FirstCall/ -- In a motion filed with the Bankruptcy Court today, Refco Inc. (OTC: RFXCQ - News) said it has proposed to enter an agreement with privately held GAIN Capital Group (GAIN), under which GAIN would acquire the Refco FXA (RFXA) retail customer account information and related assets. The proposed agreement provides RFXA customers with the potential to recover up to 100 percent of account balances. The proposed agreement is reflected in a non-binding term sheet that is subject to documentation and Bankruptcy Court approval, among other conditions.

[Andre]

Thats great news for those Refco customers whose assets were frozen. Should work out well for Gain also over the long term. :)

[Zak]

I don't think they are going to fully refund all the accounts right away - from what I heard if you were a Refcofx account holder with a balance of above $150 you will get $150 in your account....the judge also still has to rule on Gains offer

[Cellar]

Here is more detail-

Gain has offered to buy Refco FX customer and marketing lists for 2.5 million. If the deal is approved by the bankruptcy court the Refco customers can open an account with Gain with a starting bonus of $150, and then receive 25% of the total sum that was in their Refco account every 6 months for 2 years. To receive this however they have to meet minimum trading requirements from Gain.

FXCM had agreed to purchase Refco FX in a $150 million deal in March, which would have restored the funds to all customer accounts. However, the Refco Creditor Committee objected to the offer, and the deal ended up falling through.