Earlier this year, Refco Capital LLC, a wholly owned subsidiary of [Refco Capital Markets], made significant loans to the controlling shareholders of [PlusFunds Group Inc], which borrowings were substantially used in connection with a tender offer for, and other purchases of, certain [PlusFunds] shares held by other shareholders. These purchases were substantially completed in the Spring of 2005. The controlling shareholders pledged the entirety of their shares in [PlusFunds] to Refco Capital LLC as security for the repayment of these loans. Under the terms of the various loan agreements entered into by the controlling shareholders, Refco Capital LLC may require that the loans be repaid in shares of [PlusFunds] on March 29, 2007, based upon a pre-defined formula for the valuation of such shares. If Refco Capital LLC does so require this repayment, it must also purchase all of the other shares held by the controlling shareholders at the same valuation.
PlusFunds Group Inc Investor Letter
Filed as an attachment to
S&P Managed Futures Index Fund LP Form 8-K
