NEW YORK (Bloomberg) ? Bermuda-based Refco Capital Markets Ltd., a unit of bankrupt Refco Inc., won court approval to repay $96 million to JPMorgan Chase & Co. to settle an outstanding loan.

US Bankruptcy Judge Robert Drain in New York authorised the payment yesterday. It will cover most of the balance owed on a $201 million loan Refco Capital received just before its parent collapsed in October, 2005. JPMorgan sought $101.5 million, trustee Marc Kirschner said in court papers.

?The motion states that the settlement was the product of extensive analysis by the creditors? committee, reviewed by Mr. Kirschner and his counsel, and it?s unopposed,? Drain said.

Refco, based in New York, filed for bankruptcy in 2005, a week after disclosing that former chief executive officer Phillip Bennett concealed $430 million in debt.