Breaking: FXCM Inc on Track with Repayment Of Leucadia Loan
According to Leucadia National's quarterly earnings report, the firm is expecting to receive over $75 million of its loan to
In its quarterly earnings report, Leucadia National Corporation (NYSE:LUK) announced that it has already started receiving loan repayments from FXCM Inc (NYSE:FXCM) after it provided a critical lifeline to the foreign exchange brokerage in the aftermath of the Swiss National Bank havoc.
The creditor company detailed in its earnings announcement that it expects FXCM Inc (NYSE:FXCM) to repay more than $75 million, or over a quarter of the loan within three months from the announcement made in January.
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The details provided by Leucadia National shed light on the progress being made by FXCM on its loan repayment. According to the agreement between the companies, FXCM Inc (NYSE:FXCM) would incur a penalty of $30 million if it fails to reduce the principal of the loan to below $250 million before the 16th of April.
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From the details provided by Leucadia, it looks like FXCM Inc (NYSE:FXCM) is on track with the effort and is striving to over-deliver on repayments in order to mitigate the impact of interest rate increases on the two-year loan it secured from Leucadia after announcing a $225 million loss from the Swiss National Bank turmoil.
The terms of the agreement between Leucadia National and the foreign exchange broker revealed a quarterly interest rate hike of 1.5% limited to a maximum of 20.5%.
The repayment effort by FXCM looked increasingly challenging after December’s CFTC data showed that retail forex funds held at the brokerage in December decreased by 12%, while according to initial data, the firm experienced an outflow of $332 million of client funds in the immediate aftermath of the Swiss franc debacle when compared to data from the firm’s last quarterly report dating to September 3o.
Haha……do they really expect anyone to believe that ?? Priceless.
So are they still going to sell Fastmatch? Volumes are still way down compared to pre-SNB levels, only like 6bn ADV.
They needed $225 millions and got $300 millions. So far they’re paying back using the loan 😉
Unfortunately I shorted after initial drop at 1.30 now I am trapped. I still didnt cover and I dont know what to do.I should have never shorted
I lost everything.How am I gonna cover now. It looks like it is going to $5
God help me
Ken,
Stop hating on FXCM because you’re not the biggest broker yourself. Get over yourself.
@michael c han
Come on mate, do your math, the stock is not moving above $1 short term and closer to $zero when it transpires that they are not generating enough operating cashflow to pay any of the loan organically. As per Adam above, they are just losing loan proceeds to pay the loan. We have not seen any asset disposals and with $6bn daily volume they will not be getting anywhere soon.
Simple math. The only analyst that covers the stock (after all other analysts abandoned the stock) has a share price target of $1.
Bye bye FXCM.
I’m not the biggest broker Tony, I don’t work at a broker ?? What and FXCM still are ??? Bloody priceless mate.
Can someone on this forum explain to me how FXCM is repaying the loan? I have not seen any results as to their financial performance and I have not see any asset sales.
I currently have a negative balance following Black Thursday and I am intrigued what they are planning to do and how.
Any information as to their operating cash position will be appreciated.
Same question with @Yagob. Have not seen any progress on their attempt of recovering negative balances from selected group of traders representing 10% of their clients.
It could be most likely as @Adam said, the first repayment is made with the 300 m loan.
Victor can you please elaborate more around FXCM? Everything appears to be rosy, but apparently people do not bite this.
Can we have some insight as to what Yagob is implying for example?
Even though there is always a way a to beautify and boost numbers, will eagerly wait what they will announce. I would personally like to see also your views on these numbers, whether they add up or make any sense since not all readers have the ability for interpretation.
Thanks Victor
I interpret this message as hold; indeed FXCM itself will decide the trend going forward.