Bank of America Corp., an agent for secured creditors in the Refco bankruptcy, has asked the Bankruptcy Court to establish a committee to rein in Refco’s rising costs. Bank of America said the company is spending the equivalent of $150 million a year, based on the approximately $42 million in fees and expenses that Refco incurred between the October 17, 2005 filing date and January 31, 2006.

Bank of America states that Refco cannot sustain these professional costs and has questions about the source of payment for the professional expenses.

Bank of America has said that the budget committee should be made up of unsecured bondholders and secured creditors. According to Bank of America, Judge Robert Drain, the Bankruptcy Court judge, has “expressed a positive view” toward the establishment of a budget committee.

An ABC news article can be viewed here: http://abcnews.go.com/Business/wireStory?id=1893141&business=true

Ray