Statement from the Office of the Trustee for the Liquidation of MF Global Inc.
November 17, 2011 – New York, New York – James W. Giddens, the Trustee for the liquidation of MF Global Inc., is pleased that U.S. Bankruptcy Judge Martin Glenn today approved the Trustee’s request to allow the bulk transfer of 60% of the cash attributable to approximately 23,300 commodities clients of MF Global holding only unencumbered cash, or cash equivalents, in their accounts on October 31, 2011. The cash transfer could be approximately $520 million.
The Trustee is working with the Chicago Mercantile Exchange (CME) to affect the transfers in a quick and orderly fashion. It is hoped that the CME can begin cash transfers before Thanksgiving.
The approval of these transfers means that distributions to nearly all of the 38,000 MF Global Inc. former commodities clients will have been made within weeks of the bankruptcy filing.
The Office of the Trustee, in conjunction with exchanges and regulators, is continuing to explore whether expedited relief might also be possible for claimants whose positions were largely liquidated between the bankruptcy filing date and the date of bulk transfers.
Previously, approximately 14,500 commodity customer accounts with open positions, along with approximately $1.5 billion in collateral associated with those positions, which is approximately 60% of the collateral that had been associated with these positions at the time of the bankruptcy, were transferred to other future commodities merchants.
It is the Trustee’s goal to, as promptly as facts and circumstances permit, ensure that all customers receive approximately 60% of their account values. The Trustee hopes to make additional distributions as additional assets of the MF Global Inc. estate are identified and under the estate’s control. The Trustee has a pending motion before Judge Glenn, which will be heard on Tuesday, November 22, to establish a claims process, which, if approved, would be put into place shortly thereafter.
The information in this statement does not apply to any other MF Global entity, including separate insolvency proceedings involving the parent company