This content is from: Innovation

Pardon His French: Refco Sacre Blew It

If misery loves company, Refco’s got it with Thomas H. Lee Partners.

If misery loves company, Refco’s got it with Thomas H. Lee Partners. Several units of the collapsed broker as well as the New York-based private equity firm are being slapped silly by Gerard Sillam, a French businessman, with a lawsuit to recover some $800 million in fees. Sillam, who originally filed the action in November, went a-courting again this week, specifically to U.S. Bankruptcy Court, where he filed a proof of claim to make sure his action can continue in federal court. The original 39 defendants in the case have been whittled down to just seven, and wouldn’t you know, most of them are Refco units, plus Lee. According to Dow Jones Newswires, Sillam claims that through his efforts in setting up securities businesses in Europe, the defendants made a ton of money and he is entitled to be paid, despite Refco’s other cash woes. Attorney Michael Kushner of New York’s Blanch Law Firm told DJN that the defendants have moved to dismiss the case, a decision on which is due by the end of the summer.

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