Insurance, taxes, hosting: FinanceFeeds looks at the first claims against Global Brokerage - FinanceFeeds

Insurance, taxes, hosting: FinanceFeeds looks at the first claims against Global Brokerage

Although there has been no order by the Court to file claims in the bankruptcy case of Global Brokerage, some companies and individuals have acted proactively.

Ever since Global Brokerage Inc (OTCMKTS:GLBR), formerly known as FXCM Inc, filed for Chapter 11 bankruptcy at the New York Southern Bankruptcy Court, there has been no Court order directing any filing of claims against the broker. Nevertheless, several companies, institutions and individuals have apparently decided to be proactive and file “proof of claim” with the Court.

To date, Prime Clerk LLC, an administrative advisor to Global Brokerage, has unveiled seven such claims, covering issues ranging from insurance to hosting. FinanceFeeds has examined the documents.

  • The first claim is from investors who bought 8,000 shares of FXCM Inc. There are a couple of similar claims.
  • The New York State Department of Taxation and Finance has also submitted a claim – the value is $7,645 and refers to FXCM Inc’s tax liabilities. The penalty and interest are computed to December 11, 2017 (the date of the filing of the petition for Chapter 11 bankruptcy by the broker).
  • Let’s also note that Merrill Corporation has a claim of $968. This is the price for maintaining Global Brokerage’s website. The sum includes an infrastructure fee for continuation of the website services and a hosting fee.
  • A noteworthy claim has been filed by AIG Property Casualty and its affiliates that provided insurance services and/or surety bonds to Global Brokerage (FXCM Inc). As of December 11, 2017, Global Brokerage is indebted to AIG for premiums, deductibles, and other related fees, the document says. AIG has provided the debtor with insurance services commencing November 29, 2010. The claim is made for all obligations of the Debtor and other named insureds arising from the Insurance Program. The latter includes all agreements between AIG and the Debtor for various periods starting November 29, 2010. The value of the claim is not specified.

Earlier this month, the New York Southern Bankruptcy Court issued an order approving the payment of nearly $3 million in fees to King & Spalding LLP (Counsel to the Debtor), Perella Weinberg Partners LP (Investment Banker and Financial Advisor to the Debtor), and Prime Clerk LLC (Administrative Advisor to the Debtor).

In the meantime, Global Brokerage has not yet made public its 10-K report for 2017.

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