Bankruptcy Judge grants Global Brokerage’s Motion to pay Trade Claims

Maria Nikolova

Global Brokerage was authorized by the New York Southern Bankruptcy Court to pay, in the ordinary course of business, some or all of the prepetition Trade Claims of Trade Creditors in an aggregate amount not to exceed $300,000.

The so-called “First Day Hearing” in the Chapter 11 bankruptcy case of Global Brokerage Inc (NASDAQ:GLBR), formerly known as FXCM Inc, has resulted in a number of Motions filed by the entity being granted by the Honorable Michael E. Wiles. The list of approved Motions includes the one to authorize Global Brokerage to continue using its existing bank account and business forms, as well as the one for the entry of an order establishing notification procedures and approving restrictions on certain transfers of interests in the debtor.

The Bankruptcy Judge has also granted the Motion for payment of the so-called Trade Claims. In the ordinary course of business, Global Brokerage incurred various fixed, liquidated, and undisputed payment obligations (Trade Claims) to various third-party providers of services (Trade Creditors). The Trade Claims include, but are not limited to, claims of (i) providers of services necessary to the Debtor’s business operations; (ii) providers of professional services including accounting and legal services; and (iii) other general operational expenses.

For the 12 months prior to filing the bankruptcy petition, Global Brokerage’s average aggregate monthly payment to Trade Creditors was about $250,000.

The Judge has agreed that Global Brokerage is authorized to pay, in the ordinary course of business, some or all of the prepetition Trade Claims of Trade Creditors in an aggregate amount not to exceed $300,000.

The Judge also scheduled a Combined Hearing for January 17, 2018, in line with the timetable proposed by Global Brokerage’s Counsel. At this hearing, the Bankruptcy Court will consider, among other things, the adequacy of the Disclosure Statement and confirmation of the Prepackaged Plan for Chapter 11 bankruptcy.

Global Brokerage is now set to mail a Notice to its creditors. It informs them that a Chapter 11 Bankruptcy Case was launched by the company on December 11, 2017. The Notice also says that creditors are not required to file a claim at this time. However, if the Court sets a claims deadline, creditors will be notified and provided a proof of claim form by mail.

Read this next

Retail FX

ThinkMarkets expands CFDs lineup to over 4000 ETFs and shares

ThinkMarkets has expanded its service offering by incorporating 2500 new CFDs on shares and ETFs on its ThinkTrader platform.

Retail FX

France regulator warns investors of Omega Pro,

France’s financial markets regulator alerted investors that scams related to Omega Pro Ltd are beginning to circulate, with the blacklisted firm capitalizing on the situation to run a range of “unrealistic” offers.

Digital Assets

Web3 platform Grand Time paid $2 million in token earnings to date

Community-driven Web3 platform Grand Time said its offering – which includes a multifaceted platforms and its native token – has been gaining significant traction highlighted by impressive operational metrics.

Institutional FX

FX volumes at MOEX halved in April as ruble gains gorund

Currency trading at Moscow Exchange (MOEX) halted its upward route in April as monthly volumes nearly halved from a month earlier.

Digital Assets

FTX US adds stock trading, fractional shares to crypto platform

FTX US, the American subsidiary of crypto exchange FTX has kicked off stock trading feature to its customers in an effort to compete with popular platforms such as Robinhood and eToro.

Industry News

UK FCA empowered to remove brokers’ permissions in 28 days

Businesses with permissions they don’t need or use, risk misleading consumers. These new powers will enable us to take quicker action to cancel permissions that are not used or needed.

Industry News

CFTC charges $44m Ponzi scheme but millions may have fled to foreign crypto exchange

The CFTC alleged that defendants transferred millions of dollars to an off-shore entity that, in turn, may have transferred funds to a foreign cryptocurrency exchange. None of these funds were returned to the pool.


Saxo Bank deploys Adenza to address Basel and EBA requirements

The integration of ControllerView will enhance Basel-driven capital calculations and reporting at Saxo Bank in support of the bank’s multijurisdictional capital and liquidity reporting requirements throughout Denmark, Switzerland and UK, with plans to expand into the Netherlands.

Executive Moves

ComplySci appoints CTO, CPO, and CLO to further regtech’s product expansion

ComplySci offers compliance software used by more than 1400 global institutions to identify risk and address regulatory compliance challenges.