Global Brokerage Bankruptcy Filing is the latest news in the series of updates in regards to this ex-Forex giant. What FXCM officials had to say about Global Brokerage decision to file Chapter 11?
13 November, AtoZForex –One of the top Forex brokers hits the industry with another shocking news. Apparently, the prestigious representative of the financial services market is in trouble now.
FXCM comments on Global Brokerage Bankruptcy filing
On the 11th of November, Global Brokerage, the parent company of FXCM, has announced that the company is going to file chapter 11. This implies that as of now, the firm has filed for bankruptcy. Moreover, the Global Brokerage is about to get delisted from the NASDAQ, along with changes in board members and other restructuring measures.
In the past few months, the FXCM management took remarkable steps to detach itself from the Global Brokerage company. This ultimately has played a great role in the protection of the FXCM's clientele in the light of the latest developments. The CEO of FXCM Brendan Callan has commented:
“FXCM clients should know that Global Brokerage refinancing does not effect FXCM Group which continues to operate as usual. Global Brokerage's plan is positive news for FXCM as it allows us to put GLBR’s distractions behind us.”
Global Brokerage restructuring support agreement
Along with the CEO the Chairman of the Board of FXCM and Managing Director of Leucadia, Jimmy Hallac, said:
“We are very pleased that Global Brokerage has pursued a path that in relatively short order, will resolve the uncertainties relating to its future.
We believe that the restructuring is a very positive thing for FXCM that will allow the firm to put to rest any remaining uncertainties surrounding its ability to drive forward and continue to plan for future following the changes in early 2017.
To that end, Leucadia extended our credit agreements to give FXCM even better flexibility to achieve that goal.”
Global Brokerage also announced that Global Brokerage, Global Brokerage Holdings, FXCM Group, Leucadia and the Ad Hoc Group have entered into the restructuring support agreement (RSA). The RSA aims to restructure the obligations of Global Brokerage and Global Brokerage Holdings to a prepackaged plan of reorganization. You can find the details of this plan here.
The key purpose of the plan is to provide Global Brokerage with the opportunity to extend the maturity on its current debt obligations for five years. It also will enable Global Brokerage to restructure its current operations to reduce current expenses.
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