Late last night Global Brokerage published an announcement that it is filing for Chapter 11 of the United States bankruptcy law and delisting from NASDAQ. Following up on the restructuring announcement, FXCM was granted a twelve-month extension to pay back its remaining loan balance to Leucadia.
Commenting on the news, the Chairman of the Board of FXCM and Managing Director of Leucadia, Jimmy Hallac, stated: “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 the future following the changes in early 2017. To that end, Leucadia extended our credit agreement to give FXCM even better flexibility to achieve that goal,” Hallac elaborated.
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FXCM Clients Unaffected
The CEO of FXCM, Brendan Callan, explained: “FXCM clients should know that Global Brokerage’s refinancing does not affect 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.”
“Leucadia’s incredible support and loan extension allows FXCM to appropriately balance debt repayment with our growth and innovation plans,” Mr Callan concluded.
FXCM Group is a holding company of Forex Capital Markets Limited, which includes all EU branches under FXCM UK, FXCM Australia Pty. Limited and all affiliates of the aforementioned companies.
Back in October FXCM Group and Global Brokerage Holdings LLC announced that the management agreement between the firms was terminated.