The U.S. Bankruptcy Court issued an order approving Global Brokerage’s Disclosure Statement and concurrently confirming the Company’s Prepackaged Plan of Reorganization.
As previously reported, “The overall purpose of the Plan is to enable Global Brokerage to exchange its current convertible notes for new notes that have a five-year extended maturity and to restructure its current operations to reduce current expenses….The Plan provides for the following: Issuance of new notes to replace the Existing Notes. The New Notes have a five-year maturity, are secured, will be guaranteed by Holdings, lack a conversion feature, and contain certain additional covenants…; Amendment of the limited liability company agreement of Holdings to provide the Holders of the New Notes with additional contractual protections; Amendment of the limited liability company agreement of FXCM to provide for certain permitted payments to fund certain cash interest payments on the New Notes and to ensure certain funds for anticipated expenses of GLBR; Amendment of that certain Amended and Restated Credit Agreement, dated as of January 25, 2015, by and among Holdings, Leucadia…to extend the maturity of the Leucadia Credit Agreement from January 2018 to January 2019 to enhance the prospects for a refinancing of the facility, mitigating a risk to the ongoing financial viability of FXCM and, in turn, the financial viability of Holdings and GLBR.”
This online foreign exchange trading company filed for Chapter 11 petition on December 11, 2017, listing $1 billion million in pre-petition assets.
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