Funds duke it out over Refco assets

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Hedge fund creditors of Refco Capital Markets, Refco's unregulated offshore futures exchange brokerage, could begin receiving payouts as early as January 2007.

But then again, they might not - at least if Refco stockholders, led by another group of hedge funds, have anything to do with it.

RCM creditors could expect payouts to begin in January based on the plan support agreement filed in mid-September with the U.S. Bankruptcy Court for the Southern District. That agreement, which represents three-quarters of RCM creditors, earmarks a recovery rate of 70% for RCM securities customers whose assets were frozen when Refco filed