Leucadia National Corporation (NYSE: LUK), which loaned the then-US forex broker FXCM $300 million in January 2015, reported that it it recovered the full amount of cash it lent the forex broker.
However, the H1 2017 report of the corporation shows that Global Brokerage Inc. (NASDAQ:GLBR), formerly known as FXCM Inc. still owes it $122.1 million of the principal balance outstanding, as of June 30, 2017. The Q1 2017 report of Leucadia had showed that FXCM owed it $123 million and a remaining equity investment value of $187 million.
It is expected that in the coming months FXCM will further stabilize its financial standing and repay further sums to Leucadia, following the sale of the stake in the FastMatch electronic communications network (ECN) to Euronext in May. The deal will be finalized in Q3 2017.
Leucadia has lent FXCM $300 million in January 2015. The sum was needed by FXCM to meet its regulatory-capital requirements and continue normal operations after the unprecedented loss of $225 million due to Swiss National Bank decision to abandon EUR/CHF minimum exchange rate.
The loan had an initial interest rate of 10% per annum, increasing by 1.5% per annum each quarter, not to exceed 20.5% per annum. Additionally, Leucadia got a 49.9% stake in FXCM Group, with the rest in in the hands of Global Brokerage Inc.
In 2016 the conditions of the loan were amended and Leucadia extended the agreement by one year, to January 2018.
Since its forced exit from the US market this February, FXCM has managed to repay the main part of its debt to Leucadia.