 Refco's image was tarnished by its former boss |
UK-based Man Group has re-emerged as a potential bidder for the futures brokerage unit of collapsed US finance company Refco. Refco filed for bankruptcy protection on 18 October after its former chief executive was charged with fraud and concealing a $430m (�243m) loan.
As part of the move, Refco plans to sell its futures brokerage unit to US buy-out specialist JC Flowers.
Hedge fund Man has now gone to court to try to block this sale.
 |  A debtor which sells assets in a Chapter 11 case has an obligation to obtain the highest and best values for the benefit of its estate |
It and another potential buyer, Marathon Asset Management, went to the US bankruptcy court to voice their objection to the sale to JC Flowers.
They instead want a bidding process in place for Refco's futures brokerage.
Man had earlier distanced itself from making a bid for the Refco unit.
Under US Chapter 11 bankruptcy protection law, an American company is able to apply for breathing space in which to reform its finances.
'Highest value'
Man said it its filing that the current Refco bidding process "significantly impeded" its ability to make a proper bid.
 Mr Bennett faces up to 20 years in jail if found guilty |
It added that "a debtor which sells assets in a Chapter 11 case has an obligation to obtain the highest and best values for the benefit of its estate".
"Unfortunately, the debtors' proposed bid procedures fail to pursue this objective," it said.
A spokesman for Man confirmed both that the company was a potential bidder for the Refco business, and that it had made a legal objection to the planned sale to JC Flowers.
The spokesman declined to make any further comments.
Damaged reputation
Until its problems, Refco was one of the biggest of the companies providing liquidity to ensure that traders are be able to buy and sell contracts.
But its reputation was left in tatters, and its share price tumbled, after charges were levelled against former boss Phillip Bennett.
Mr Bennett is accused of hiding the fact that Refco Capital Markets - an unregulated subsidiary he controlled - owed $430m to its parent company through a series of undisclosed transactions.
The $430m has since been repaid but the arrangement was not revealed at the time of Refco's flotation, calling the company's future into question.
Mr Bennett faces up to 20 years in jail if found guilty of securities fraud.
Refco shares have been suspended since the scandal emerged.
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