(Bloomberg) — Refco Inc., the futures trader that went bankrupt after its top executive was accused of fraud, won approval of its bankruptcy plan and can begin distributing $4.1 billion to cover claims.US Bankruptcy Judge Robert Drain in New York authorised the plan last week. His ruling keeps Refco on schedule to conclude its bankruptcy proceeding and begin paying creditors. The company ultimately will go out of business.

Refco filed the 15th-biggest bankruptcy in US history on October 17, 2005, a week after disclosing that former chief executive officer Phillip Bennett had concealed $430 million in company debt. Bennett pleaded not guilty to federal fraud charges in November and is awaiting trial.

Under the plan, Refco will distribute about $4.1 billion, 24 percent of the $16.8 billion creditors were owed when it filed for bankruptcy, plus a portion of proceeds from lawsuits on behalf of the company and its affiliates against third parties, according to court documents.

Holders of Refco’s $397 million 9 percent bonds maturing in 2012 will receive 83.42 cents on the dollar under the plan. Secured creditors, owed $642 million, will be fully repaid with interest, for a total of about $717 million.

Unsecured creditors will share $554 million, according to court documents.

Customers of bankrupt affiliate Refco Capital Markets Ltd. will share $1.9 billion on $2.7 billion in claims. Unsecured creditors of the unit will be paid about $371.8 million on $991.5 million in claims.