Important update: The reason why Gallant Capital Markets filed for bankruptcy
Following the news that Gallant Capital Markets Ltd, the parent company of forex broker GCMFX, announced that it has filed for a voluntary petition under chapter 11 of the United States Bankruptcy Code, with the United States Bankruptcy Court for the Eastern District of New York, today the company has revealed why took this decision.
According to a new announcement, the company says that the decision to file was not an easy one, and was done only after a comprehensive review of all options available to the company.
As Gallant Capital Markets revealed, the decision to voluntarily file results from an inability to withdraw funds from one of its regulated counterparties in order to meet liquidity demands.
Below is the latest announcement as it was published by the company:
” Gallant Capital Markets, herein referred to as “the Company”, announced on Friday, April 14th, it has commenced a formal proceeding to restructure its balance sheet to better position itself for future opportunities. To facilitate this restructuring, the company filed voluntary petitions under chapter 11 of the U.S. Bankruptcy Code in the United States Bankruptcy Court in the Eastern District of New York. While the company regrets having to take such actions, it does so in the best interests of the company and its clientele. The decision to voluntarily file results from an inability to withdraw funds from one of its regulated counterparties in order to meet liquidity demands. The decision to file was not an easy one, and was done only after a comprehensive review of all options available to the company. 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. We thank you for your continued patience and hope for a quick and satisfactory resolution for our clients and vendors.”
We will follow the news regarding Gallant Capital Markets and post any updates regarding its issue.
Source: Gallant Capital Markets