Refco faces more woes as FX unit sale falls through

New York-based FX broker Forex Capital Markets ended takeover talks on Monday. It was the only bidder for Refco's currency trading unit, Refco FX Associates, for which it had previously offered a reported $130 million.

Forex Capital Markets' chief executive, Drew Niv, blamed indecision on the part of Refco's creditors: "We knew the creditors were unhappy with our bid, but every time we raised it, they would not give us a firm counter-offer with a real price attached to it," he told a financial newswire.

Meanwhile, the UK High Court ordered Refco Securities to pay Russia's largest bank, OAO Sberbank, $122 million for failing to return Russian government eurobonds Refco was holding as collateral on a loan to Sberbank.

Refco filed for bankruptcy in October last year after accountants discovered $430 million in concealed debts. Chairman and chief executive Phillip Bennett is now on trial, having pleaded not guilty to charges of fraud.

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