Thomas H. Lee Loses $1.36 Billion on Refco
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Thomas H. Lee Partners, the buyout firm, has lost $1.36 billion from its investment in Refco Inc., the commodities and futures broker under bankruptcy protection, regulatory filings show.
In a Wednesday filing with the Securities and Exchange Commission, the firm estimated that the fair market value of its Refco common stock was $21.5 million as of Dec. 31. That’s down from $1.38 billion as of Sept. 30, according to an SEC filing Nov. 10.
Common stock investors often recover nothing for their holdings in a bankruptcy.
Thomas H. Lee Partners was the majority investor in Refco, and took it public last August in a $583-million offering.
Refco filed for Chapter 11 protection Oct. 17 after accusing former Chief Executive Phillip Bennett of hiding $430 million of debt. Refco is selling some assets to pay creditors, which it has said it owes $16.8 billion.
Bennett has pleaded not guilty to criminal conspiracy and fraud charges.
Thomas H. Lee Partners’ $6.1-billion fund is one of the world’s largest buyout funds.
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