The NYSE has now concluded its evaluation and the determination to suspend trading was reached in view of the Company’s October 17, 2005 announcement that Refco, Inc. and certain subsidiaries have filed for protection under Chapter 11 of the U.S. Bankruptcy Code. In addition, the Company announced on October 17, 2005 that it has entered into a memorandum of understanding with a group of investors for the sale of the Company’s futures brokerage business, which was not part of the bankruptcy filing. The NYSE also considered the anticipated ongoing nature of the Securities and Exchange Commission (“SEC”) and US Department of Justice investigations into the Company’s accounting practices, the uncertainty as to the timing and outcome of these investigations, the reduction in the scope of operations and the Company’s statement that its previously filed financial statements should no longer be relied upon.
The NYSE notes that it may make an appraisal of, and determine on an individual basis, the suitability for continued listing of an issue in light of all pertinent facts whenever it deems such action appropriate. One of the factors noted in the NYSE's continued listing criteria that may lead to a company's delisting is conduct not in keeping with sound public policy. In addition, the NYSE may, at any time, suspend a security if it believes that continued dealings in or listing of the security on the NYSE are not advisable. In light of all the circumstances involving the Company, the NYSE has determined that the Company's common stock is no longer suitable for continued listing on the NYSE.
The Company has a right to a review of this determination by a Committee of the Board of Directors of the NYSE. Application to the SEC to delist the Company's common stock will be made upon the completion of applicable procedures, including any appeal by the Company of the NYSE staff's decision.
