Global Brokerage Inc. said about 78.5% of the holders of its 2.25% convertible notes due 2018 unanimously approved its prepackaged plan of reorganization.
The company voluntarily filed for a Chapter 11 bankruptcy in the U.S. Bankruptcy Court for the Southern District of New York. The case is expected to take no longer than 60 days. The company said all voting creditors approved the plan.
Global Brokerage, its affiliate Global Brokerage Holdings LLC, FXCM Group LLC, Leucadia National Corp., LUK-FX Holdings LLC and an ad hoc group of holders of more than 68.5% of the 2.25% convertible notes due 2018 entered into an agreement to restructure the obligations of the Global Brokerage companies. The plan aims to allow Global Brokerage to exchange the current notes for new notes that have a five-year extended maturity and to restructure its current operations to cut expenses.
FXCM Group is not part of the Chapter 11 filing.
Global Brokerage's legal adviser is King & Spalding LLP, and its financial adviser is Perella Weinberg Partners LP.
