Global Brokerage files for Chapter 11 bankruptcy in New York

Maria Nikolova

On December 11, 2017, Global Brokerage filed a voluntary petition for reorganization under Chapter 11 of the Bankruptcy Code in the United States Bankruptcy Court for the Southern District of New York.

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A followup to FinanceFeeds’ earlier article about the plans of Global Brokerage Inc (NASDAQ:GLBR), formerly known as FXCM Inc, to file for Chapter 11 bankruptcy…

Last night, the company finally provided an update on the voting of its noteholders. The deadline for receiving the ballots was December 4, 2017. As per the latest information, about 78.5% of the holders of Global Brokerage’s 2.25% Convertible Notes due 2018 unanimously approved its proposed, prepackaged plan of reorganization.

On December 11, 2017, Global Brokerage filed a voluntary petition for reorganization under Chapter 11 of the Bankruptcy Code in the United States Bankruptcy Court for the Southern District of New York. The bankruptcy case is expected to take no longer than sixty days.

FinanceFeeds has access to all the documents in the case and will be keeping an eye on how the bankruptcy procedure develops.

Last week, the company said it it had informed Nasdaq of its intention to delist its Class A common stock from the NASDAQ Capital Market.

This happens about a month after Nasdaq approved Global Brokerage’s application to transfer its stock to the NASDAQ Capital Market exchange, with the securities trading on the NASDAQ Capital Market since the opening of business on November 13, 2017.

Global Brokerage said that it intends to file a Form 25, Notification of Removal from Listing under Section 12(b) of the Securities Exchange Act of 1934, with the Securities and Exchange Commission (SEC) on or about December 19, 2017, notifying the SEC of its delisting from the Exchange. The last day of trading on the Exchange will be December 28, 2017.

Global Brokerage’s Board of Directors intends to withdraw its Common Stock from listing on the Exchange as a result of several factors, including the intention to deregister its Common Stock under the Securities Exchange Act of 1934, as amended, and terminate its duty to file periodic reports with the SEC in order to reduce its costs of compliance with the rules of the SEC and of the Exchange.

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