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Gallant Capital Markets Ltd, the parent company of the forex broker GCMFX, announced it has filed for bankruptcy under Chapter 11 of the United States Bankruptcy Code, with the United States Bankruptcy Court for the Eastern District of New York.
According to the statement on the broker’s site, the filing was voluntary, but there is not other information what lead to this drastic move. On the other hand, filing under Chapter 11 of the code does not mean liquidation, but permits reorganization under the bankruptcy laws of the United States. The Chapter 11 bankruptcy is available to every business, whether organized as a corporation, partnership or sole proprietorship and to individuals, although it is most frequently used by corporate entities.
As per earlier reports of The Finance Magnates, in 2014 the brokerage was bought off by the New Zealand company WSM Invest. Back then the company was valued at between $10.5 million and $14.5 million.
The company is based in the British Virgin Islands and is regulated by the local Financial Services Commission. The broker was offering leverage of up to 1:400, variable spreads, around 40 forex pairs and trading on the popular MetaTrader 4 platform.