Refco Bidder Alaron Has Been Ruled Out of Auction (Update1)
Nov. 9 (Bloomberg) -- Alaron Trading Corp., one of five bidders to buy assets of bankrupt futures broker Refco Inc., has been ruled out of a bankruptcy auction, Chief Executive Steven Greenberg said in an interview today.
``The bottom line is we're not going to be able to bid,'' said Greenberg. ``We're disappointed.''
Refco is holding an auction today to help pay debts after filing the 14th-largest bankruptcy in U.S. history following disclosure that former Chief Executive Officer Phillip Bennett hid $430 million of debt. Man Group Plc, the world's biggest publicly traded hedge fund manager, Interactive Brokers Group LLC, and a group led by the Dubai government had said they intend to bid for Refco's assets.
Refco in New York hasn't identified the companies bidding or the value of their offers.
Chicago-based Alaron, founded in 1989, offers trading in energy, metals, grains and other commodities, as well as currencies and securities. It specializes in individual accounts and was seeking to expand through a Refco acquisition.
Alaron's lawyers received a voice mail message in the ``middle of the night'' saying Refco wasn't qualified, Greenberg said. He said the company wasn't told a reason.
Alaron Managing Partner Gary Weber said in an interview that the auction was ``shrouded in mystery.''
The company probably wasn't disqualified because its bid was too small or because of a ``money issue,'' Weber said. More likely, it was a ``legal or technical issue'' involving the documents outlining Alaron's bid, he said.
To contact the reporters on this story:
Ann Saphir in Chicago at
asaphir@bloomberg.net
Last Updated: November 9, 2005 08:50 EST
