Global Brokerage files to qualify its ‘new’ $172.5M debt to replace Convertible Notes


SEC charges

Global Brokerage Inc (OTCMKTS:GLBR), formerly known as FXCM Inc, has taken the next step in its Chapter 11 bankruptcy reorganization, filing a ‘T-3’ form with the US Securities and Exchange Commission (SEC) to qualify the new debt it will issue to current holders of the company’s $172.5 million of outstanding Convertible Notes.

The new debt will be non-convertible, will pay 7% interest, with a maturity of 2023 – meaning that Global Brokerage has five years to repay the debt. The existing Notes would have come due in June of this year. Global Brokerage was forced into an early reorganization of its debt, late last year, after it failed to maintain its listing requirements on Nasdaq, triggering a technical default on the Convertible Notes.

Global Brokerage received the necessary approvals earlier this month from its Convetible Noteholders to move forward with the Chapter 11 reorg plan, which should formally take effect in the coming weeks.

We would note that FXCM Group, in which Global Brokerage holds a 50% interest, is not directly involved with the Chapter 11 filing. FXCM’s customers and customer funds will not be impacted by the Plan. Similarly, FXCM’s banking and trading counterparties, service providers, and other business relationships will not be impacted. FXCM Group, a leading retail FX and CFD broker, has continued to operate normally.

Global Brokerage’s T3 filing for the new Notes can be seen here.

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Global Brokerage files to qualify its 'new' $172.5M debt to replace Convertible Notes

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