Update from the Office of the Trustee for the Liquidation of MF Global Inc. Following Nov. 16 Court Hearing
November 15, 2011 – New York, New York – We will be meeting with the objectors regarding the claims process on Thursday, as we are anxious to move forward with the establishment of a claims process.
We will continue to work around the clock to understand the shortfall and to identify and return customer property as quickly as possible in a fair and equitable manner consistent with the law.
After an update briefing from our forensic accountants, we now have further clarity on the number of accounts. Many MF Global Inc. customer accounts were out of date, inactive or very small. The true number of commodity customer accounts is approximately 38,000. Of those accounts, approximately 14,500 commodity customer accounts with open positions have been transferred to other future commodities merchants, along with approximately $1.5 billion in collateral associated with those positions. In addition, the Trustee has filed a motion seeking approval of a bulk transfer of 60% of the cash attributable to approximately 23,300 commodities client accounts that held only cash in their accounts on October 31, 2011. If that bulk transfer is approved, nearly all of the 38,000 customer account holders will receive distributions within three weeks of the bankruptcy filing.
On Thursday, November 17, 2011 at 11:00 AM, Judge Martin Glenn will hold a hearing to consider the Trustee’s motion seeking approval of a bulk transfer of cash. The hearing will be held at the United States Bankruptcy Court at One Bowling Green in Room 501.
On Tuesday, November 22, 2011 at 3:00 PM, Judge Glenn will hold another hearing on the expedited claims process. That hearing will be held in the same courtroom.
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.