Troubled commodities broker Refco Inc. filed applications in the Bermuda Supreme Court yesterday related to two of its Bermuda units, likely in a move to appoint joint provisional liquidators.

The Bermuda applications were made as Refco moved forward on Chapter 11 bankruptcy protection proceedings in the US for 24 of its unregulated units.

The company made its US application late on Monday, as a consortium of investors, led by hedge fund J.C. Flowers & Co., lined up to buy its regulated futures brokerage business for some $770 million.

The Bermuda applications relate to Refco Capital Markets, Ltd. and secondly, Refco Global Finance Ltd. understands that the Bermuda applications concern the appointment of joint provisional liquidators ? a measure taken parallel to the Chapter 11 proceedings in the US.

In similar situations in the past, this has been the route taken.

Refco?s main Bermuda subsidiary, Refco Capital Markets, Ltd., was temporarily shut down on October 13 because of a lack of liquidity.

This unit provided prime-brokerage services to hedge funds.

Refco?s troubles follow the discovery, earlier this month, that former chief executive Phillip R. Bennett hid a $430 million debt owed by a company he controlled to Refco.

The monies were repaid the day of the discovery but Refco?s share price plummeted on news of the undisclosed, related-party transaction.

Bennett, who has since been arrested by US authorities, is alleged to have broken securities laws by not disclosing that his company, Refco Group Holdings Inc., was the debtor, not an unrelated third party.

Refco Capital Markets, Ltd., the Bermuda unit, is alleged to have been involved in a $335 million loan to Bennett?s company, through an intermediary company.

Refco, long a privately-held company, went public in August. Its shares are currently in the process of being delisted on the New York Stock Exchange.

The first Refco company in Bermuda ? a predecessor to Refco Capital Markets, Ltd. ? was formed 15 years ago, according to records on file with the Registrar of Companies.

Three other Refco units incorporated on the Island are not known to be the subject of any legal actions surrounding Refco?s sale and global reorganisation of its units.

Law firms Conyers Dill & Pearman and Williams Barristers & Attorneys are acting in the Bermuda applications.