The former parent of FXCM Group, Global Brokerage, is proceeding with its restructuring plan. Put to a vote, the reorganisation proposal was approved by a wide margin by holders of the firm’s convertible notes, which are due in 2018.
About 78.5 percent voted to proceed with the bankruptcy filing. The company submitted its petition for reorganisation under Chapter 11 of the US Court of the Southern District of New York. The case is expected to proceed not longer than 60 days.
In accordance with the plan, the main goal of the agreement is to restructure the obligations of Global Brokerage and Global Brokerage Holdings. The existing notes that fall due in 2018 will be swapped for new five year notes. The operations of the company will also be optimised to reduce expenses.
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The restructuring of Global Brokerage is not affecting in any way the brokerage nor its customers. The retail and institutional clients of the firm, that include FXCM’s banking and trading counterparties, service providers, and other business relationships, will continue as normal.
The company’s legal advisors are King & Spalding LLP, and its financial advisors are Perella Weinberg Partners LP.
Back in October 2017, the management agreement between Global Brokerage and FXCM Group was terminated. The company’s shares have been delisted from NASDAQ.