GLBR Global Brokerage Inc (CE)

Global Brokerage, Inc. (NASDAQ:GLBR) (“Global Brokerage”), announced today that, after receiving votes from approximately 78.5% of the holders of its 2.25% Convertible Notes due 2018 (the “Current Notes”) unanimously approving its proposed, prepackaged plan of reorganization (the “Plan”), Global Brokerage has filed a voluntary petition for reorganization under Chapter 11 of the Bankruptcy Code in the United States Bankruptcy Court for the Southern District of New York. The bankruptcy case is expected to take no longer than sixty days. All voting creditors voted in favor of the Plan.

As announced on November 10, 2017, Global Brokerage and its affiliate, Global Brokerage Holdings, LLC (“Global Brokerage Holdings”), an ad hoc group of holders of more than 68.5% of the Current Notes, FXCM Group, LLC (“FXCM Group” or “FXCM”) and Leucadia National Corporation and LUK-FX Holdings, LLC entered into a restructuring support agreement (the “RSA”) to restructure the obligations of Global Brokerage and Global Brokerage Holdings pursuant to the Plan . The overall purpose of the Plan is to enable Global Brokerage to exchange the Current Notes for new notes that have a five-year extended maturity and to restructure its current operations to reduce current expenses.

FXCM Group is not involved with the Chapter 11 filing.  FXCM’s customers and customer funds will not be impacted by the RSA and 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 will continue to operate normally.

Global Brokerage’s legal advisors are King & Spalding LLP, and its financial advisors are Perella Weinberg Partners LP. Additional information regarding Global Brokerage’s Chapter 11 case and the Plan can be found in the Current Report on Form 8-K filed with the SEC on November 13, 2017 and on the Prime Clerk website at: https://cases.primeclerk.com/globalbrokerage.

Disclosure Regarding Forward-Looking Statements

In addition to historical information, this earnings release may contain “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, Section 21E of the Exchange Act and/or the Private Securities Litigation Reform Act of 1995. Forward-looking statements include statements preceded by, followed by, or including the words “believes,” “expects,” “anticipates,” “plans,” “estimates,” “projects,” “forecasts,” or similar expressions. Examples of forward-looking statements in this news release are statements about the expected terms and timing of the Plan, the expected SEC deregistration and the financial impact on Global Brokerage, including reduced expenses, resulting from the restructuring transactions. These forward-looking statements are not historical facts and are based on current expectations, estimates and projections about Global Brokerage’s industry, business plans, management’s beliefs and certain assumptions made by management, many of which, by their nature, are inherently uncertain and beyond our control. Accordingly, readers are cautioned that any such forward-looking statements are not guarantees of future performance and are subject to certain risks, uncertainties and assumptions that are difficult to predict including, without limitation, risks associated with Global Brokerage’s strategy to focus on its operations outside the United States, risks associated with the events that took place in the currency markets on January 15, 2015 and their impact on Global Brokerage’s capital structure, risks associated with Global Brokerage’s ability to recover all or a portion of any capital losses, risks relating to the ability of Global Brokerage to satisfy the terms and conditions of or make payments pursuant to the terms of the finance agreements with Leucadia, as well as risks associated with Global Brokerage’s obligations under its other financing agreements, risks related to Global Brokerage’s dependence on FX market makers, market conditions, risks associated with the outcome of any potential litigation or regulatory inquiries to which Global Brokerage may become subject, risks associated with potential reputational damage to Global Brokerage resulting from its sale of US customer accounts, and those other risks described under “Risk Factors” in Global Brokerage’s Annual Report on Form 10-K, Global Brokerage’s latest Quarterly Report on Form 10-Q, and other reports or documents Global Brokerage files with, or furnishes to, the SEC from time to time, which are accessible on the SEC website at sec.gov. This information should also be read in conjunction with Global Brokerage’s Consolidated Financial Statements and the Notes thereto contained in Global Brokerage’s Annual Report on Form 10-K, Global Brokerage’s latest Quarterly Report on Form 10-Q, and in other reports or documents that Global Brokerage files with, or furnishes to, the SEC from time to time, which are accessible on the SEC website at sec.gov.

About Global Brokerage, Inc.

Global Brokerage, Inc. (NASDAQ:GLBR) is a holding company with an indirect effective ownership of FXCM Group, through its equity interest in Global Brokerage Holdings, of between 7.5 – 37.3% depending on the amount of distributions made by FXCM Group.

Investor Relations investorrelations@globalbrokerage.info