JC Flowers has pulled out of the deal. Apparently, they received preferential treatment (a break-up fee of up to $21.5 million and reimbursed expenses up to $7 million) which the bankruptcy judge would not allow. Flowers reduced its offer, but it was still not acceptable to the judge.
It looks as though Flowers was favored by the Refco board to such a degree that other potential bidders were not allowed access to the documents and information that should have been available to enable them to evaluate making a potentially higher bid. In fact, a higher bid ($60 million more than Flowers') has been made and others are being considered.
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