The trustee of Peregrine Financial Group Inc, the regulated unit of the collapsed Iowa-based brokerage PFGBest, has sought bankruptcy court permission to operate the business with the aim of liquidating its assets, according to a court filing.
Trustee Ira Bodenstein has also asked the court's permission to retain 57 employees to assist him in the liquidation process.
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"The Trustee believes that the continued operation of the debtor's business is both necessary to maintain the value of the assets and to allow him to maximize the recovery from the liquidation," according to the filing.
The trustee does not intend to solicit new customers or market Peregrine services to the public, according to the filing. The trustee's motion will be heard on Friday.
On July 10, Peregrine Financial Group filed to liquidate under Chapter 7 of the U.S. bankruptcy code, with between $500 million and $1 billion of assets, between $100 million and $500 million of liabilities, and between 10,000 and 25,000 creditors.
The Commodity Futures Trading Commission (CFTC) earlier alleged Peregrine Financial Group and its owner defrauded customers and lied to regulators in order to hide a shortfall that now exceeds $200 million.
Peregrine Chairman Russell Wasendorf Sr apparently attempted suicide on July 9 and was hospitalized.
The case is: Peregrine Financial Group Inc, Case No. 12-27488 U.S. Bankruptcy Court, Northern District Of Illinois (Eastern Division)