Refco Inc.	back to case studies
	Financial irregularities and criminal arrest of CEO just two months after IPO Largest Broker-Dealer bankruptcy with over $16 billion in assets and liabilities

Capstone was engaged by the Refco Capital Markets, Ltd. (“RCM”) Chapter 11 Trustee to assist in evaluating intercompany transactions between RCM and Refco Inc. and its subsidiaries (the “Refco Estate”). A settlement was achieved in September 2006 and a Plan of Reorganization was approved by the Court on December 16, 2025 (the “Plan”).

Under the Plan, Capstone professionals became the Refco Plan Administrator as well as officers of the Post-Emergence Refco Estate serving as President, Chief Financial Officer and Treasurer and are responsible for managing the orderly wind-down of the Chapter 11 Estates.

Fiduciary Services:

As senior management, we performed the following services:

• Oversaw the liquidation of foreign entities
• Negotiated miscellaneous asset sales
• Managed the treasury operations and cash reserves, which in January 2007 were in excess of $700 million
• Prepared and filed Federal and State tax returns
• Managed document and electronic data retention
• Provided assistance to matters related to various criminal trials
• Developed a plan to retain remaining employees
• Prepared quarterly reports required by the US Trustee
• Resolved priority, administrative and unsecured claims filed by various creditor parties including taxing authorities
• Managed distributions to creditors

Outcome:

Through December 31, 2009, Class 5a Contributing Debtor Claimants have received the maximum recovery under the Plan, 40%, compared to the Disclosure Statement estimate of 23%. In addition, the Refco Estates distributed over $600 million to RCM, compared to $460 million contemplated under the Plan.