Gallant Capital Markets Ltd, the parent company of the forex broker GCMFX said it has filed for bankruptcy in order to restructure and its balance sheet to better position itself for future opportunities.
We remind you that in the end of last week Gallant Capital Markets 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. Filing under this specific chapter does not mean liquidation, but permits reorganization under the bankruptcy laws of the United States. Last week, however, the company did not clarify the reasons behind its unexpected move.
“While the company regrets having to take such actions, it does so in the best interests of the company and its clientele”, the new statement of Gallant Capital Markets reads. Further, the company clarifies that the hard decision was prompted by its inability to withdraw funds from one of its regulated counterparties in order to meet liquidity demands. According to Gallant Capital Markets, this was the only viable option for it.
“The firm has notified its regulatory body and will do all it can to provide information in a timely and transparent fashion to its client base as the court allows”, the company said.
Gallant Capital Markets 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.