Global Brokerage enlists 90 creditors in filing with NY Southern Bankruptcy Court
The names on the list include former and current executives of the broker, as well as regulators, investors, and professional service providers.
The volume of submissions made by Global Brokerage Inc (NASDAQ:GLBR), previously known as FXCM Inc, with the New York Southern Bankruptcy Court continues to grow. The company, which is set to have the “First Day Hearing” in its Chapter 11 bankruptcy case later today, has published a list of its creditors – entities to which it owes money.
The list includes 90 names, such as former and current executives Dror Niv, Ornit Niv, William Ahdout, Eduard Yusupov and Kenneth Grossman. The names of regulatory bodies (the Financial Industry Regulatory Authority and the Securities and Exchange Commission, for example) are also present on the list. The name of Leucadia is also there, of course.
683 Capital Partners – the hedge fund that targets Global Brokerage in what we call the “mega lawsuit”, is also among the names on the list.
As FinanceFeeds reported earlier, Global Brokerage has named the largest unsecured claims. The list includes: BNY Mellon; Ernst & Young; Morris, Nichols, Arsht & Tunnell LLP; D.F. King & Co. Inc; S2 Filing, LLC.
As per Global Brokerage’s Chapter 11 Plan, “General Unsecured Claims” are unsecured Claims, other than: (a) an Administrative Claim; (b) a Priority Tax Claim; (c) an Other Priority Claim; (d) an Existing Notes Claim; or (e) an Intercompany Claim.
On the Effective Date or as soon as reasonably practicable thereafter, each Holder of an Allowed General Unsecured Claim is set to receive (i) payment in full, in Cash, of the unpaid portion of its Allowed General Unsecured Claim; (ii) Reinstatement of its Allowed General Unsecured Claim in accordance with Section 1124(2) of the Bankruptcy Code (including any Cash necessary to satisfy the requirements for Reinstatement), (iii) such other distribution as necessary to satisfy the requirements of section 1129 of the Bankruptcy Code, or (iv) other treatment, as decided by the Debtor and the Holder.
Global Brokerage is pushing for a swift transition into Chapter 11. The First Day Hearing, scheduled for today, has a number of documents on the agenda that seek to secure such a transition. The documents range from a motion for authorization to continue using Global Brokerage’s existing bank account and business forms to a motion for authority to pay prepetition claims of general unsecured creditors in the ordinary course of business. A motion for the entry of an order establishing notification procedures and approving restrictions on certain transfers of interests in the debtor is also on the agenda outlined by Global Brokerage’s Counsel.
