Case Study

Refco

CLIENT: Major investor in the Rogers Funds

Gordian Group served as financial advisor to interested parties.

Business Profiles

Situation

Refco was a New York-based financial services company that provided brokerage services for commodities and futures contracts. Refco and 23 affiliates filed for bankruptcy court protection on October 17th, 2005, a week after revealing that the former chief executive had hidden $430 million of debt, and two months after raising $583 million in an Initial Public Offering (IPO).

Engagement

Gordian Group represented the largest investor in an alternative asset vehicle whose funds and investments were held at Refco and were compromised by Refco’s bankruptcy filing. Gordian Group guided this investor through the bankruptcy process and attendant litigation.

Outcome

Through active and aggressive pursuit of all available recovery means, we ultimately guided our client to a full recovery of its exposure to Refco as well as the unwinding of its derivatives exposures.