Court orders official closure of Global Brokerage’s Chapter 11 case
Two months after Global Brokerage requested the closure of its bankruptcy case, the New York Southern Bankruptcy Court granted the request.
Judge Michael E. Wiles of the New York Southern Bankruptcy Court has earlier today signed an Order closing the Chapter 11 case of Global Brokerage Inc (OTCMKTS:GLBR), formerly known as FXCM Inc. The decision is announced about two months after the broker requested the closure of the case.
In its order, the Court mentions the objection received from FXCM Inc’s shareholder Brett Kandell. His motion, however, was denied, with the Court saying Mr Kandell may pursue his claims at the Delaware Court where the case against a number of FXCM’s directors over the fairness of the Leucadia deal is pending.
The Chapter 11 Case is hereby closed as of the date hereof. The Order is without prejudice to any parties’ right to seek to re-open the closed Chapter 11 Case for good cause shown.
The closing of the case shall not authorize the Reorganized Debtor to destroy any documents, and any obligations of the Reorganized Debtor to preserve documents relevant to pending litigation shall continue pursuant to the applicable preservation orders and applicable law.
Let’s recall that Global Brokerage filed for bankruptcy on December 11, 2017. This happened about a week after the company said it it had informed Nasdaq of its intention to delist its Class A common stock from the NASDAQ Capital Market.
The Chapter 11 case was multi-faceted, as what may be seen as hidden agenda was revealed during a hearing. The transcript of the hearing has shown that a certain part of the bankruptcy plan did not go through – the part where Global Brokerage provides releases to its directors and officers, that is, gives them a clean slate to move on, while quietly nixing a number of derivative lawsuits against them.
The Judge assigned to the case back then voiced his concerns about the proposed releases in the plan and did not approve them.