MFGI trustee files expedited claims process

Statement from the Office of the Trustee for the Liquidation of MF Global Inc.

November 15, 2011 – New York, New York – James W. Giddens, the court-appointed Trustee for the liquidation of MF Global Inc., today filed an expedited application with the United States Bankruptcy Court for the Southern District of New York seeking approval of a claims process for former customers of MF Global Inc., which is now under a court-ordered liquidation and wind down.

Having completed an initial bulk transfer as authorized by the Commodity Exchange Act and the Securities Investor Protection Act, the Trustee is moving forward with the liquidation process by seeking to establish an expedited claims process. Once approved by the court, commodities and securities customer claimants will receive claim forms and claims filing instructions. The claims will be reviewed promptly. The Trustee’s staff will communicate directly with claimants regarding questions related to their claims.

The initiation of the claims process does not prevent the Trustee from exploring other means of accelerated relief for customer accounts, to the extent they are possible and consistent with the law. The Trustee is pursuing such options. Any such relief, if possible, would be on public notice, and presented to the Bankruptcy Court for approval. The Trustee also continues to seek a willing and qualified transferee of securities customer accounts.

The Trustee understands customer frustration and is urgently working to make progress toward distributions. Distributions will be made as promptly as possible, and it is likely that distributions will be made in increments.

The Trustee is continuing his thorough, deliberate and independent investigation into the apparent shortfall at MF Global Inc. While former management of MF Global Inc. reported a shortfall of approximately $600 million to regulators on October 31, 2011, the Trustee’s team along with the Department of Justice, the CFTC, and other investigators are examining the accuracy of bookkeeping at the broker-dealer and are attempting to verify records, including records dating prior to the Trustee’s appointment. The amount of the apparent shortfall is not known at this time.

The information in this statement does not apply to any other MF Global entity, including separate insolvency proceedings involving the parent company, MF Global Holdings Ltd.

Link to motion

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