Global Firm in Hot Water

A global firm is in hot water after filing for business bankruptcy earlier this month.

While this is not surprising in and of itself considering the high rate of business bankruptcies recently, there are rumors of shoddy record keeping and missing funds. The company went to court this month to ask the bankruptcy judge to approve a motion to keep operating on cash. The motion was approved and the company will be allowed to use its cash flow to operate on an interim basis.

However, the question of the missing funds, $600 million in customer accounts, still remains unanswered. The brokerage firm tried to sell itself off earlier this month but the deal fell through. It is now talking about the possibility of using debtor-in-possession financing to draw up a restructurement plan. The trustee in charge of the bankruptcy filing is also responsible for locating the missing $600 million. When asked how long the search would take, he responded that there is simply no timetable at this time.

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