Global Brokerage plans to retain FXCM Group as service provider
Global Brokerage plans to pay $200,000 a year to FXCM Group LLC as compensation for its services.
Global Brokerage Inc (OTCMKTS:GLBR), formerly known as FXCM Inc, which has filed its Chapter 11 bankruptcy petition in December 2017, has provided more details on its reorganization. On Friday, January 5th, Global Brokerage submitted its plan supplement with the United States Bankruptcy Court for the Southern District of New York. The plan supplement includes a number of documents, including a Service Agreement by and between FXCM Group, LLC and Global Brokerage, Inc.
The proposed agreement states that Global Brokerage Inc., a Delaware Corporation, desires to retain FXCM Group, LLC, a Delaware Limited Liability Company, as Service Provider.
The Service Provider shall be considered an independent contractor of Global Brokerage. FXCM Group will (inter alia):
- Provide bookkeeping and payroll assistance, as well as information and assistance to Global Brokerage to prepare its financial reports;
- Cooperate with Global Brokerage’s independent contractors that provide services relating to Global Brokerage’s financial reporting obligations, including, but not limited to, tax advisory, accounting advisory, and other financial services directly related to financial reporting;
- Cooperate with Global Brokerage in defense of any claims that are made or have been made against it.
- Allow Global Brokerage to use Service Provider’s offices to conduct meetings and perform work related to Global Brokerage.
FXCM Group will be permitted to use its subsidiaries, agents and contractors to perform the services in question. Global Brokerage shall pay to the Service Provider, as compensation for its services, a fee of $200,000 per annum.
The Agreement is set continue for one year (the “Initial Term”) once it is signed. Thereafter, the term of this Agreement will automatically be extended for successive one-year periods.
Let’s recall that the Judge assigned to the case has 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.
