Pre-Packaged Reorganization Plan and Disclosure Statement Filed by Global Brokerage, Inc.
December 11, 2017 at 12:00 am EST
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Global Brokerage, Inc. filed a pre-packaged plan of reorganization and related disclosure statement in the US Bankruptcy Court on December 11, 2017. Under the plan, administrative claims, professional fee claims, US Trustee fee and priority tax claims will be paid in full in cash. Other priority claims of $0.1 million will be paid in full in cash. There is no other secured claim and if any, it will be paid in full in cash. Existing Notes claims of $172.5 million will be cancelled and discharged and shall receive its pro rata share of the New Notes. The holders of unsecured claims of $0.1 million will be paid in full in cash or reinstated. Intercompany claims of $12.15 million shall be paid, adjusted, continued, settled, reinstated, discharged, or eliminated on the consent of the Noteholders and Leucadia. There is no other secured claim and if any, it will be paid in full in cash. Interests of equity holders shall remain unimpaired and reinstated. The plan will be funded from cash on hand, issuance of new notes and ongoing business operations.
Global brokerage, Inc., formerly FXCM Inc. (FXCM), is engaged in providing online foreign exchange (FX) trading, contract for difference (CFD) trading, spread betting and related services. The Company owns over 50% of FXCM Group, LLC (FXCM Group). FXCM Group is a holding company of Forex Capital Markets LLC, (FXCM US), Forex Capital Markets Limited, inclusive of all EU branches (FXCM UK), FXCM Australia Pty. Limited, (FXCM AU). The Company focuses on providing global traders with access to market by offering trading tools, hiring trading educators. In addition, FXCM offers educational courses on FX trading and provides trading tools data and resources. FXCM Pro provides retail brokers, small hedge funds and market banks access to wholesale execution and liquidity, as well as providing high and medium frequency funds access to prime brokerage services through FXCM Prime.