FXCM CEO says Global Brokerage’s bankruptcy plan is positive news
In another push to distance itself from Global Brokerage, FXCM’s Brendan Callan says Global Brokerage’s “restructuring plan” is positive news for FXCM.
Further to the big news from last night about Global Brokerage Inc (NASDAQ:GLBR) unveiling a plan to file for the so-called “reorganization” bankruptcy under Chapter 11, the comments from FXCM’s management started coming in, as expected.
Unsurprisingly, FXCM is seeking to distance itself further from Global Brokerage’s problems, with the remarks made by FXCM CEO Brendan Callan proving just that.
“GLBR’s plan is positive news for FXCM as it allows us to put GLBR’s distractions behind us”, said FXCM’s CEO Brendan Callan.
The comments are in tune with numerous assertions by Global Brokerage that FXCM Group is not affected by the Chapter 11 filing. FXCM’s customers and customer funds are set to not to be impacted by the RSA and the Plan, Global Brokerage asserts. Similarly, FXCM’s banking and trading counterparties, service providers, and other business relationships are not to be impacted. FXCM Group is set to continue to operate as usual.
Brendan Callan’s comments were echoed by those made by Jimmy Hallac, Chairman of the Board of FXCM and Managing Director of Leucadia, who stated:
“We are very pleased that GLBR has pursued a path that, in relatively short order, will resolve the uncertainties relating to its future. We believe that the Restructuring is a very positive thing for FXCM that will allow FXCM to put to rest any remaining uncertainties surrounding its ability to drive forward and continue to plan for the future following the changes in early 2017. To that end, Leucadia extended our credit agreement to give FXCM even better flexibility to achieve that goal.”
It is worth noting that nowhere in the press release the word “bankruptcy” is mentioned. This sensitive word is replaced by phrases like “restructuring plan”. Chapter 11, however, implies bankruptcy.
In its latest 10-Q filing with the Securities and Exchange Commission (SEC), Leucadia reiterated that its loan is with FXCM and not with Global Brokerage and that it holds no equity interest in Global Brokerage.
