March 14 (Bloomberg) -- Directors of MF Global Holding Ltd.’s U.K. unit said they don’t know whether the brokerage is in the red or the black, leaving creditors such as JPMorgan Chase & Co. and Unipec Singapore Pte. uncertain how much they will recover.
While the legally required “statement of affairs” from the directors showed about £1.87 billion ($2.93 billion) of assets, compared with liabilities of around £1.77 billion, the directors said they didn’t know how much some assets may be sold for, administrators KPMG LLP said today.
The nature and number of issues affecting claims against MF Global’s U.K. unit mean “directors have been unable to reach a view on the realizable value of particular classes of assets or, consequently, the likely surplus or shortfall to the estates,” KPMG said in a statement.
KPMG, appointed to wind up the London-based unit when MF Global Holdings Inc. filed for bankruptcy in October, is trying to reconcile competing claims from the broker’s U.S. trustee and customers who had money frozen in trading accounts. The U.S. brokerage unit, MF Global Inc., is the largest creditor of the U.K. business with a 685.3 million pounds claim. JPMorgan is owed about £100 million, and Unipec Singapore Pte. £23.6 million.
The firm said it recognized the need for greater visibility and would publish more information about each asset class when available. The statement of affairs listed as “uncertain” the estimated realization value of the unit’s assets. KPMG has yet to give an estimate of the losses facing clients or creditors.
The document was signed by Charles Pendred, non-executive chairman of MF Global U.K. Ltd. The unit’s two other directors have left.