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