Welcome!

News Feed Item

MF Global Trustees and Administrators Announce Agreements

NEW YORK and LONDON, December 22, 2012 /PRNewswire/ --

 

MF Global Inc., MF Global UK Ltd. and MF Global Holdings Ltd. Reach Agreements to Resolve All Claims Among The Estates

 

James W. Giddens, Trustee for the Securities Investor Protection Act (SIPA) liquidation of MF Global Inc. (MFGI), and Richard Heis, a Joint Administrator of MF Global UK Ltd. (MFGUK), today jointly announced that they have reached an agreement to resolve all claims between the two entities, including the 30.7 client assets and repo to maturity valuation disputes currently before the High Court of England.  Mr. Giddens has filed a motion with the United States Bankruptcy Court for the Southern District of New York, the Honorable Judge Martin Glenn presiding, seeking entry of an order approving the agreement.  

Simultaneously, Mr. Giddens and the Chapter 11 Trustee for MF Global Holdings Ltd., et al, (MFGH), Louis J. Freeh, have agreed to resolve all claims between their respective estates.  Further, MFGH and MFGUK have agreed to resolve the claims between their respective estates and the litigation commenced by MFGH against MFGUK, subject to the satisfaction of certain conditions.

Combined, the agreements are expected to benefit customers and creditors of the primary MF Global insolvency estates worldwide: MF Global Inc., MF Global UK Ltd. and MF Global Holdings Ltd.  The agreements, which are subject to certain conditions being satisfied before they become effective, put in place the key conditions needed for these estates to make significant distributions by avoiding lengthy and costly litigation, providing additional certainty on the total value of claims against the estates and reducing required reserves held against such claims.

"These agreements are in the best interests of former customers and other creditors and allow us to request court approval for significant additional distributions for securities and commodities customers," said Giddens.  "Resolving complex issues with these entities marks a critical milestone in administering the MF Global Inc. estate.  The agreements could not have come about without cooperation from all parties and the involvement of the Securities Investor Protection Corporation, the Commodity Futures Trading Commission and the Securities and Exchange Commission.  We are now focused on court approval, satisfying the conditions to the agreements and making additional distributions."

"Our agreement with MF Global Inc. will clear important obstacles and allow us to significantly reduce reserves that have blocked us from additional distributions to the former customers and creditors of MF Global UK," Heis said. "Mainly as a result of litigation, we have been able to distribute only some 10 percent of the approximately US$2.5 billion that we have collected. This settlement, if concluded, will allow a major escalation in this, and we will move quickly to get money in agreed claimants' pockets at the earliest opportunity."

MF Global Inc. and MF Global UK Ltd. Agreement

As a result of the agreement between MFGI and MFGUK, it is estimated that between US$500 million and US$600 million would be ultimately returned to the MFGI estate, depending on final payout rates from the MFGUK client money and general creditor estates.  Mr. Giddens anticipates the possibility of 100 percent satisfaction of allowed securities customers' claims and significant additional distributions to commodities customers who traded on US exchanges (4d funds) and commodities customers who traded on non-US exchanges (30.7 funds).   Mr. Giddens has filed an application for additional distributions with the Bankruptcy Court.

The Joint Special Administrators will early in January produce a further updated estimated outcome statement showing the projected position of MFGUK post-settlement and an estimate of the increase in the client money distribution percentage and the amount of an initial dividend.  The Joint Special Administrators will seek to pay as soon as possible after the settlement becomes effective.

The Joint Special Administrators approached Mr. Giddens and his team with substantial relevant information developed by KPMG and the management and staff of MFGUK concerning the financial position of the MFGUK estate.  This allowed Mr. Giddens to conduct a detailed review, which determined there is reasonable basis for the projected payments from MFGUK to MFGI, although the ultimate amounts recovered are not guaranteed.

The parties are grateful for the cross-border cooperation between the staffs of Mr. Giddens and the Joint Special Administrators at KPMG.  The Joint Special Administrators also have welcomed the assistance the Financial Services Authority has provided throughout the special administration.

All currently pending litigation between MFGI and MFGUK will be temporarily suspended to allow for completion of the agreement.  The agreement is not an admission of liability in relation to 30.7 issues before the High Court of England, or any comment upon the merits of the 30.7 litigation or the legal issues that arise in relation to it or in relation to the effect of Rule 30.7 of the United States Commodity Futures Trading Commission.

Conditions that must be completed before the agreement becomes effective include the Bankruptcy Court making an order that (i) approves the settlement, (ii) prohibits MFGI 30.7 customers from making or continuing claims against MFGUK that are duplicative of claims made by MFGI, and (iii) requires 30.7 customers with allowed claims with a value of greater than $12,000 to give a release in favor of MFGUK in respect of any duplicative claims as a condition to receiving further payment from MFGI.  The agreement is also conditional upon MFGH withdrawing its litigation against MFGUK.

 


SOURCE MF Global Inc., MF Global UK Ltd. and MF Global Holdings Ltd. Trustees and Administrators

More Stories By PR Newswire

Copyright © 2007 PR Newswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

Latest Stories
A critical component of any IoT project is what to do with all the data being generated. This data needs to be captured, processed, structured, and stored in a way to facilitate different kinds of queries. Traditional data warehouse and analytical systems are mature technologies that can be used to handle certain kinds of queries, but they are not always well suited to many problems, particularly when there is a need for real-time insights.
Providing secure, mobile access to sensitive data sets is a critical element in realizing the full potential of cloud computing. However, large data caches remain inaccessible to edge devices for reasons of security, size, format or limited viewing capabilities. Medical imaging, computer aided design and seismic interpretation are just a few examples of industries facing this challenge. Rather than fighting for incremental gains by pulling these datasets to edge devices, we need to embrace the i...
In 2014, Amazon announced a new form of compute called Lambda. We didn't know it at the time, but this represented a fundamental shift in what we expect from cloud computing. Now, all of the major cloud computing vendors want to take part in this disruptive technology. In his session at 20th Cloud Expo, John Jelinek IV, a web developer at Linux Academy, will discuss why major players like AWS, Microsoft Azure, IBM Bluemix, and Google Cloud Platform are all trying to sidestep VMs and containers...
Web Real-Time Communication APIs have quickly revolutionized what browsers are capable of. In addition to video and audio streams, we can now bi-directionally send arbitrary data over WebRTC's PeerConnection Data Channels. With the advent of Progressive Web Apps and new hardware APIs such as WebBluetooh and WebUSB, we can finally enable users to stitch together the Internet of Things directly from their browsers while communicating privately and securely in a decentralized way.
IoT is at the core or many Digital Transformation initiatives with the goal of re-inventing a company's business model. We all agree that collecting relevant IoT data will result in massive amounts of data needing to be stored. However, with the rapid development of IoT devices and ongoing business model transformation, we are not able to predict the volume and growth of IoT data. And with the lack of IoT history, traditional methods of IT and infrastructure planning based on the past do not app...
All organizations that did not originate this moment have a pre-existing culture as well as legacy technology and processes that can be more or less amenable to DevOps implementation. That organizational culture is influenced by the personalities and management styles of Executive Management, the wider culture in which the organization is situated, and the personalities of key team members at all levels of the organization. This culture and entrenched interests usually throw a wrench in the work...
In his session at DevOps Summit, Tapabrata Pal, Director of Enterprise Architecture at Capital One, will tell a story about how Capital One has embraced Agile and DevOps Security practices across the Enterprise – driven by Enterprise Architecture; bringing in Development, Operations and Information Security organizations together. Capital Ones DevOpsSec practice is based upon three "pillars" – Shift-Left, Automate Everything, Dashboard Everything. Within about three years, from 100% waterfall, C...
Fifty billion connected devices and still no winning protocols standards. HTTP, WebSockets, MQTT, and CoAP seem to be leading in the IoT protocol race at the moment but many more protocols are getting introduced on a regular basis. Each protocol has its pros and cons depending on the nature of the communications. Does there really need to be only one protocol to rule them all? Of course not. In his session at @ThingsExpo, Chris Matthieu, co-founder and CTO of Octoblu, walked through how Octob...
The Internet of Things can drive efficiency for airlines and airports. In their session at @ThingsExpo, Shyam Varan Nath, Principal Architect with GE, and Sudip Majumder, senior director of development at Oracle, discussed the technical details of the connected airline baggage and related social media solutions. These IoT applications will enhance travelers' journey experience and drive efficiency for the airlines and the airports.
"We're bringing out a new application monitoring system to the DevOps space. It manages large enterprise applications that are distributed throughout a node in many enterprises and we manage them as one collective," explained Kevin Barnes, President of eCube Systems, in this SYS-CON.tv interview at DevOps at 18th Cloud Expo, held June 7-9, 2016, at the Javits Center in New York City, NY.
Containers have changed the mind of IT in DevOps. They enable developers to work with dev, test, stage and production environments identically. Containers provide the right abstraction for microservices and many cloud platforms have integrated them into deployment pipelines. DevOps and containers together help companies achieve their business goals faster and more effectively. In his session at DevOps Summit, Ruslan Synytsky, CEO and Co-founder of Jelastic, reviewed the current landscape of Dev...
SYS-CON Events announced today that Catchpoint, a leading digital experience intelligence company, has been named “Silver Sponsor” of SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Catchpoint Systems is a leading Digital Performance Analytics company that provides unparalleled insight into your customer-critical services to help you consistently deliver an amazing customer experience. Designed for digital business, C...
With major technology companies and startups seriously embracing IoT strategies, now is the perfect time to attend @ThingsExpo 2016 in New York. Learn what is going on, contribute to the discussions, and ensure that your enterprise is as "IoT-Ready" as it can be! Internet of @ThingsExpo, taking place June 6-8, 2017, at the Javits Center in New York City, New York, is co-located with 20th Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry p...
@DevOpsSummit at Cloud taking place June 6-8, 2017, at Javits Center, New York City, is co-located with the 20th International Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. The widespread success of cloud computing is driving the DevOps revolution in enterprise IT. Now as never before, development teams must communicate and collaborate in a dynamic, 24/7/365 environment. There is no time to wait for long developm...
"We formed Formation several years ago to really address the need for bring complete modernization and software-defined storage to the more classic private cloud marketplace," stated Mark Lewis, Chairman and CEO of Formation Data Systems, in this SYS-CON.tv interview at 18th Cloud Expo, held June 7-9, 2016, at the Javits Center in New York City, NY.