A definitive proxy statement may not be your idea of a great read, but the one Nymex filed on Tuesday is full of interesting surprises, not the least of which is the $60 million door prize awarded to senior management under a change in control situations (turn to Change in Control Plan, page 24).
The mother of all lawsuits was filed against the usual Refco defendants last week by Marc S. Kirschner, trustee of the Refco Litigation Trust. The suit, filed in the Circuit Court of Cook County, Ill., slams the usual suspects: Phillip R. Bennett, Santo C. Maggio , Robert C. Trosten and Tone N. Grant, but then also accuses other firms and individuals of basically aiding and abetting the schemes that led to the Refco bankrupcy.
In the 158-page suit, the trustee alleges that “the defendants include a “who’s who” of some of the biggest names in corporate finance, law, and accounting, whose reputations and substantial assistance were required for Bennett, Maggio, Trosten and Grant (the “Refco Insiders”) to strip out billions of dollars in Refco assets. Bennett and other Refco Insiders face criminal charges for their misconduct. The trustee brings this action to recover from the Refco Insiders and those who knowingly assisted them in stripping out Refco’s assets, causing billions of dollars in damage to the Company and its creditors.” See the full lawsuit here.
