As the story of Refco's hidden non-recoverable receivables unfolded, several industry insiders wondered why the approximately $2 billion of equity taken out of the firm prior to the IPO by past and present officers couldn't have been used to solve that $430 million accounting hole. Bennett eventually had to make good on it, though at that point it was too late to stave off Chapter 11. (At press time results of the bankruptcy auction were not known. See page 15 for update.).
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