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UNITED STATES BANKRUPTCY COURT SOUTHERN DISTRICT OF NEW YORK - - - - - - - - - - - - - - - - - - - - x In re: : Chapter 11 : Refco Inc., et al : Case Nos. 05-60006 - 05-60029, : 06-11260 - 06-11262, : and 06-12436 (RDD) Debtors. : (Jointly Administered) ...

UNITED STATES BANKRUPTCY COURT SOUTHERN DISTRICT OF NEW YORK - - - - - - - - - - - - - - - - - - - - x In re: : Chapter 11 : Refco Inc., et al : Case Nos. 05-60006 - 05-60029, : 06-11260 - 06-11262, : and 06-12436 (RDD) Debtors. : (Jointly Administered) - - - - - - - - - - - - - - - - - - - - x MONTHLY STATEMENT OF CASH RECEIPTS AND DISBURSEMENTS FOR THE PERIOD FROM NOVEMBER 1, 2006 TO NOVEMBER 30, 2006 DEBTORS' ADDRESS: One World Financial Center, 200 Liberty Street, New York, NY 10281-1094 MONTHLY CASH RECEIPTS RECEIVED BY REFCO INC., ET AL (IN THOUSANDS): $407,890 MONTHLY CASH DISBURSEMENTS MADE BY REFCO INC., ET AL (IN THOUSANDS): $25,212 DEBTORS' ATTORNEY: Skadden, Arps, Slate, Meagher & Flom LLP J. Gregory Milmoe (JM 0919) Sally McDonald Henry (SH 0839) Four Times Square New York, New York 10036 REPORT PREPARER: Refco Inc. et al. The undersigned, having reviewed the attached report and being familiar with the Debtors' financial affairs, verifies under penalty of perjury, that the information contained therein is complete, accurate and truthful to the best of my knowledge. /s/ Peter F. James ------------------------------------------- Peter F. James Controller DATE: December 14, 2006 Refco Inc. / Refco Capital Markets, Ltd.(1) ----------------- (1) Marc S. Kirschner has been appointed Chapter 11 Trustee (the "Trustee") of the estate of Refco Capital Markets, Ltd. The Trustee is seeking to maintain previous reporting arrangements and filed applications to retain the professionals responsible for preparing those reports. Those applications have been granted by that certain Final Order Authorizing the Employment of Goldin Associates, LLC and AP Services, LLC as Crisis Managers for Refco Capital Markets, Ltd. dated July 17, 2006. Mr. James has been performing the function of Controller for Refco Inc., and in that capacity has been providing services to certain of Refco Inc.'s affiliates, including Refco Capital Markets, Ltd. It is anticipated that Mr. James will continue as an estate employee and in that capacity will continue to provide services to Refco Capital Markets, Ltd. Refco Inc., et al Index to Monthly Statement of Cash Receipts and Disbursements Page Notes to Monthly Statement of Cash Receipts 3 and Disbursements Schedules: Schedule I Schedule of Cash Receipts and Disbursements by Debtor 4 Schedule II Schedule of Payroll and Payroll Taxes 5 Schedule III Schedule of Federal, State and Local Taxes Collected, 6 Received, Due or Withheld Schedule IV Schedule of Professional Fee Disbursements 7 Schedule V Insurance Statement 8 Refco Inc., et al CASE NO. 05-60006 (Jointly Administered) NOTES TO MONTHLY STATEMENT OF CASH RECEIPTS AND DISBURSEMENTS (Unaudited) For the Period from NOVEMBER 1, 2006 TO NOVEMBER 30, 2006 NOTE 1--Petition for Relief under Chapter 11 On October 17, 2005, Refco Inc. and certain of its subsidiaries and affiliates each filed a petition for relief under Chapter 11 of the United States Bankruptcy Code in the United States Bankruptcy Court for the Southern District of New York (the "Court"). Refco Inc. filed jointly with the following direct and indirect subsidiaries: Bersec International LLC, Kroeck & Associates LLC, Marshall Metals, LLC, New Refco Group Ltd., LLC, Refco Administration, LLC, Refco Capital Management, LLC, Refco Capital Markets, Ltd., Refco Capital Trading LLC, Refco Capital LLC, Refco Capital Holdings, LLC, Refco F/X Associates, LLC, Refco Finance Inc., Refco Financial, LLC, Refco Fixed Assets Management, LLC, Refco Global Capital Management LLC, Refco Global Finance Limited, Refco Global Futures, LLC, Refco Global Holdings, LLC, Refco Group Ltd., LLC, Refco Information Services, LLC, Refco Mortgage Securities, LLC, Refco Regulated Companies, LLC, and Summit Management, LLC (collectively, the "Initial Debtors"). On June 5, 2006 three additional subsidiaries and affiliates (Westminster-Refco Management LLC ("Westminster"), Refco Managed Futures, LLC ("Futures"), and Lind-Waldock Securities LLC ("Lind-Waldock")) filed petitions for relief under Chapter 11 of the Bankruptcy Code and on October 16, 2006 one additional subsidiary and affiliate (Refco Commodity Management, Inc. ("RCMI")) filed a petition for relief under Chapter 11 of the Bankruptcy Code (together Westminster, Futures, Lind-Waldock, and RCMI the "Additional Debtors") (the Initial Debtors and the Additional Debtors, collectively, the "Debtors"). On June 9, 2006 and November 15, 2006, the Court entered orders authorizing the joint administration of the Additional Debtors' cases with the Initial Debtors' cases. The Debtors remain in possession of their assets and properties as debtors-in-possession pursuant to sections 1107(a) and 1108 of the Bankruptcy Code for all cases, except Refco Capital Markets, Ltd. (05-60018), in which a Chapter 11 trustee has been appointed. Certain subsidiaries of Refco Inc., consisting principally of its regulated subsidiaries, are not debtors (collectively, the "Non-Debtors") in this bankruptcy proceeding. NOTE 2--Basis of Presentation On October 9, 2005, after consultation by the Audit Committee with Refco Inc.'s ("Refco") independent accountants, Refco determined that its financial statements, as of, and for the periods ended, February 28, 2002, February 28, 2003, February 28, 2004, February 28, 2005, and May 31, 2005, taken as a whole, for each of Refco Inc., Refco Group Ltd., LLC and Refco Finance Inc. should no longer be relied upon. As a result of these events, Refco is unable to issue financial statements at the time of this filing. In lieu of presenting comprehensive financial statements, Refco has prepared the attached Statement of Cash Receipts and Disbursements. This statement has been prepared on the cash basis of accounting. 3
Schedule I Refco Inc., et al CASE NO. 05-60006 (Jointly Administered) SCHEDULE OF CASH RECEIPTS AND DISBURSEMENTS BY DEBTORS (in thousands) For the Period from NOVEMBER 1, 2006 TO NOVEMBER 30, 2006 Beginning Cash Cash Ending Case # Legal Entity Cash Balance Receipts Disbursements Cash Balance ------ ------------ ------------ -------- ------------- ------------ 05-60009 Bersec International LLC $ - $ - $ - $ - 05-60019 Kroeck & Associates LLC 339 1 - 340 06-11262 Lind-Waldock Securities LLC - - - - 05-60012 Marshall Metals LLC - - - - 05-60014 New Refco Group Ltd., LLC - - - - 05-60020 Refco Administration, LLC - - - - 05-60017 Refco Capital Holdings, LLC 11 - - 11 05-60010 Refco Capital Management, LLC - - - - 05-60018 Refco Capital Markets, Ltd. (2) 1,292,603 390,020 6,432 1,676,192 05-60026 Refco Capital Trading, LLC - - - - 05-60022 Refco Capital LLC (1), (3) 5,962 14,804 13,360 7,406 06-12436 Refco Commodity Management, Inc. 1,512 187 58 1,641 05-60023 Refco F/X Associates, LLC (4) 45,682 1,226 459 46,449 05-60016 Refco Finance Inc. - - - - 05-60013 Refco Financial, LLC - - - - 05-60029 Refco Fixed Assets Management, LLC 93 - - 93 05-60011 Refco Global Capital Management, LLC - - - - 05-60007 Refco Global Finance Limited 3,432 560 427 3,564 05-60024 Refco Global Futures, LLC (5) 2,465 13 1,861 617 05-60028 Refco Global Holdings, LLC (5) 13,619 167 1,699 12,087 05-60027 Refco Group Ltd., LLC (5) 209,210 911 916 209,206 05-60008 Refco Information Services, LLC - - - - 06-11261 Refco Managed Futures, LLC - - - - 05-60021 Refco Mortgage Securities, LLC - - - - 05-60015 Refco Regulated Companies, LLC - - - - 05-60006 Refco Inc. 80 1 - 81 05-60025 Summit Management, LLC - - - - 06-11260 Westminster-Refco Management LLC - - - - ----------- ----------- ----------- ----------- Totals $ 1,575,010 $ 407,890 $ 25,212 $ 1,957,687 =========== =========== =========== ===========
(1) The Debtors serve as a paying agent for certain Non-Debtors and Refco, LLC. During this period, approximately $2.1 million was disbursed on behalf of and reimbursed by Non-Debtors and Refco, LLC. (2) The $390.0 million in receipts for Refco Capital Markets, Ltd., represents proceeds from the liquidation of securities ($382.9 million), proceeds from the liquidation of funds at Fimat Alternative Strategies ($1.8 million), and interest income ($5.3 million). The $6.4 million in disbursements includes funding to Refco Capital LLC for its allocation of operating expenses and professional fees ($6.3 million) and the fluctuation in foreign exchange rates ($0.1 million). (3) The $14.8 million in receipts for Refco Capital LLC include $0.6 million of Ontario tax refunds (related to Refco Canada Co.) received on behalf of various Refco entities and $0.3 million receipt from Man Financial for the payment of their portion of the Reuters Settlement, pursuant to the Stipulated Order entered by the Court on November 14, 2006, Resolving Motion of Reuters America LLC for an Order (a) Pursuant to Section 365(d)(2) Compelling Debtors' Assumption or Rejection of Executory Contracts and Licenses; (b) Alternatively, Pursuant to Section 362(d), Granting Relief from the Automatic Stay and/or Payment of Adequate Protection Pursuant to Sections 363(e) and 361, and (c) Granting an Allowed Administrative Claim Pursuant to Section 503(b)(1)(A) (the "Reuters Settlement"). The $13.4 million in disbursements include the payment of professional fees ($9.3 million), Reuters Settlement payment ($0.9 million), payroll and benefits ($0.5 million), return of proceeds received and held on behalf of other Refco entities ($0.5 million), and the payment of operating expenses. (4) The $1.2 million in receipts for Refco F/X Associates, LLC includes proceeds from the sale of the customer list to Gain Capital Group, LLC, pursuant to an order entered by the Court on November 15, 2006 approving the sale ($0.8 million), the fluctuation in foreign exchange rates ($0.4 million), and interest income ($0.1 million). The $0.5 million in disbursements represents funding to Refco Capital LLC for its allocation of operating expenses and professional fees. (5) The disbursements for Refco Global Futures, LLC ($1.9 million), Refco Global Holdings, LLC ($1.7 million), and Refco Group Ltd., LLC ($0.9 million) represent funding to Refco Capital LLC for their allocation of operating expenses and professional fees. 4 Schedule II Refco Inc., et al CASE NO. 05-60006 (Jointly Administered) SCHEDULE OF PAYROLL AND PAYROLL TAXES (in thousands) For the Period from NOVEMBER 1, 2006 TO NOVEMBER 30, 2006 Employee Payroll Employer Payroll Gross Wages Paid (2) Taxes Withheld(1) Taxes Remitted(1) ------------------ ---------------- ---------------- $381 $117 $8 1 Taxes were remitted by the Debtors to a third party vendor and paid by the vendor to the appropriate federal and state tax authorities. 2 Gross Wages were paid by the Debtors on November 15, 2006 and November 30, 2006. Of the Gross Wages, approximately $167,000 were paid on behalf of and reimbursed by the Non-Debtors and Refco, LLC. 5 Schedule III Refco Inc., et al CASE NO. 05-60006 (Jointly Administered) SCHEDULE OF FEDERAL, STATE AND LOCAL TAXES COLLECTED, RECEIVED, DUE OR WITHHELD (in thousands) For the Period from NOVEMBER 1, 2006 TO NOVEMBER 30, 2006 Amount Withheld/ Amount Accrued Paid ------- ---- Federal Domestic ............................................. $ 0 $ 0 Foreign .............................................. $ 0 $ 0 ---- ---- Total Federal Taxes ............................... $ 0 $ 0 ---- ---- State and Local Income and Franchise ................................. $ 0 $ 0 Property ............................................. 0 0 Sales and Use ........................................ 0 0 ---- ---- Total State and Local ............................. $ 0 $ 0 ---- ---- Total Taxes .......................................... $ 0 $ 0 ==== ==== No taxes were due for the current period. Also, all tax returns due during the period have been filed. 6 Schedule IV Refco Inc., et al CASE NO. 05-60006 (Jointly Administered) SCHEDULE OF PROFESSIONAL FEE DISBURSEMENTS (in thousands) For the Period from NOVEMBER 1, 2006 TO NOVEMBER 30, 2006 November Fees Paid Entity Payments (1) To Date ------ ------------ ----------- AlixPartners $0 $21,624 Bingham McCutchen 958 4,471 Campbells 23 23 Capstone Advisory Group 209 425 Conyers Dill & Pearman 5 130 Davis, Polk, and Wardwell 42 42 Fiebinger, Polak, Leon, & Partner 42 230 FTI Consulting 1,874 10,009 Goldin Associates 924 8,300 Greenhill 0 5,220 Houlihan Lokey Howard & Zukin 764 4,312 Kasowitz, Benson, Torres & Friedman 0 2,189 Latham & Watkins 0 143 Lenz & Staehelin 15 158 Marc S. Kirschner (RCM Trustee) 1,000 1,000 McKenna, Long, & Aldridge 0 1,316 Milbank, Tweed, Hadley & McCloy 1,042 12,935 Omni Management Group 390 2,293 Sitrick And Company 25 1,739 Skadden, Arps, Slate, Meagher & Flom LLP 1,938 27,935 Trott & Duncan, Barristers & Attorneys 1 22 UHY Advisors NY 65 315 Wildman, Harrold, Allen, & Dixon 6 12 Williams Barristers & Attorneys 9 164 --------- ------------ Total Payments $ 9,331 $ 105,008 ========== ============ (1) The Debtors serve as a paying agent for certain Non-Debtors and Refco, LLC. During this period, approximately $0.5 million was disbursed on behalf of and reimbursed by Non-Debtors. The remaining $8.8 million was paid to professionals on behalf of and reimbursed by Debtors. Professional fees were not paid by the Debtors on behalf of Refco, LLC. 7 Schedule V Refco Inc., et al CASE NO. 05-60006 (Jointly Administered) DEBTORS' STATEMENT REGARDING INSURANCE POLICIES For the Period from NOVEMBER 1, 2006 TO NOVEMBER 30, 2006 All insurance policies are fully paid for the current period, including amounts owed for workers' compensation and disability insurance. 8