Refco's futures arm may bring in more than $1.2 billion for the now bankrupt commodities trading firm, The Times of London reports.

Refco confirmed that there were five solid bids for its futures trading auction. Though the company needs $1.4 billion to pay off banks and bondholders, the largest offer on the table is somewhere around $1 billion, from Man Group, a London-based hedge fund.

The Wednesday auction looks promising as contenders keep raising their bids, but nothing is set in stone as yet, and Refco has additional creditors owed another $14.5 billion. Among the interested parties are Man, Interactive Brokers Group, the Government of Dubai and Alaron of Chicago.

The second-highest bidder behind Man Group is the Government of Dubai, offering close to $1 billion. Other contenders have been scared off by the increasingly higher offers, including JC Flowers of New York, which offered $768 million, and Tradelink

The results of the auction will be announced this Thursday.

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