Refco court documents reveal huge discrepancy

[emad]

Refco court documents reveal huge discrepancy
By James Doran, Wall Street Correspondent



A TOTAL of $32 billion of assets and $32 billion of liabilities were wiped off the balance sheet of Refco, the collapsing commodities trading firm, between February and August this year, it emerged last night.

According to a revised bankruptcy petition published last night by Refco, the company’s assets were listed as $16.5 billion (£9.3 billion), with liabilities of $16.8 billion for the end of August. The firm listed on the New York Stock Exchange on August 11.

However, in its original Chapter 11 bankruptcy filing of Monday night, Refco claimed to have $48.7 billion of assets and $48.6 billion of liabilities as of February 28.

The company gave no explanation for the massive discrepancy, although it said in earlier filings that the figures could be subject to change because its accounts could not be relied upon.

http://www.timesonline.co.uk/newspaper/0,,173-1834324,00.html