MF Global trustee to return $685 million more to customers

March 15 (Bloomberg) -- The MF Global Inc. brokerage trustee is seeking to distribute another $685 million to customers, he said today in a statement.

Commodity customers who traded futures on foreign exchanges will get their first payments of about $50 million, and additional sums of $600 million will go to customers who traded on U.S. Exchanges, said the trustee, James Giddens. Holders of physical assets are in line to get $35 million.

The distributions require a judge’s approval. No date has been set for the payments.

Past distributions have returned 72 percent of their property to certain MF Global customers.

The MF parent filed the eighth-largest U.S. bankruptcy on Oct. 31 with debt of almost $40 billion after making bets on sovereign debt and getting margin calls.

Jon Corzine, chairman of MF Global Holdings Inc. until his resignation on Nov. 4, has said he didn’t authorize any misuse of customer money that may have occurred. Corzine is a former governor of New Jersey and former co-chairman of Goldman Sachs Group Inc.

The brokerage case is Securities Investor Protection Corp. v. MF Global Inc., 11-02790, U.S. District Court, Southern District of New York (Manhattan). The parent’s bankruptcy case is MF Global Holdings Ltd., 11-bk-15059, U.S. Bankruptcy Court, Southern District of New York (Manhattan).

 Trustee Statement

Court Motion

Copyright 2014 Bloomberg. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.

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