MFGI trustee secures $1.3 billion more, stands by $1.2 billion shortfall estimate

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

November 22, 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 for approval of a claims process for former customers of MF Global Inc. The Trustee will now establish separate, parallel customer claims processes: one for MF Global Inc.'s commodity future customers, and the other for its securities customers, as well as an additional claims process for MF Global Inc.'s general creditors.

These claims processes are in addition to, and do not replace nor prevent, the Trustee’s efforts to transfer accounts and property on a bulk basis. As the Trustee’s lead counsel, James B. Kobak, Jr. of Hughes Hubbard & Reed LLP, stated in court today, the Trustee intends to file a motion early next week seeking authorization to “true up” distributions of assets segregated for trading on US markets to 60%.

To assist in the prompt processing of claims, the Trustee will place on his website,, by November 23, 2011, PDF claims forms and will be mailing paper forms to former customers of MF Global Inc.

Claims will be reviewed promptly, and the Trustee’s staff will communicate directly with claimants regarding questions related to their claims. Court approval of the claims process supports the Trustee's goal of returning as much customer property as possible, as quickly as possible, in a manner that is fair to all customers and consistent with the law.

The Trustee is also pleased to report that a previously identified amount of segregated cash and securities at Harris Bank, totaling approximately $1.3 billion, has begun to be returned to the estate.

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.

comments powered by Disqus
Check out Futures Magazine - Polls on LockerDome on LockerDome