James W. Giddens, Trustee for the Securities Investor Protection Act (SIPA) liquidation of MF Global Inc. (MFGI), today announced the final, 100% distribution to fully satisfy all claims of former MFGI public customers. With this distribution, a total of $6.7 billion will have been returned to over 26,000 securities customers and commodities futures customers. Distributions will commence on Friday, April 4, 2014, and will continue for several weeks.
“It gives me great pleasure to say that checks are going in the mail that will make all public customers of MF Global Inc. 100% whole,” Giddens said. “When MF Global failed more than two years ago, few thought a way could be found to make customers whole. This is the result of Herculean efforts by many professionals, including Hughes Hubbard & Reed LLP and Deloitte & Touche LLP.”
The distribution is possible because of a number of innovative steps, including a temporary loan of general estate property and an assignment and subrogation of rights approved by the Honorable Bankruptcy Court Judge Martin Glenn and confirmed on appeal by the Honorable District Court Judge Victor Marrero. As a result of earlier agreements also approved by the Court, it is anticipated that additional funds will be received from MF Global UK, Ltd., which is being administered by Richard Heis at KPMG LLP.
Setting the stage for full customer distribution started on Oct. 31, 2011, when the Trustee and his staff began working around the clock to identify customer property through exhaustive investigation and forensic accounting, including tracing the more than $105 billion in transactions made in and out of MFGI in the last week before bankruptcy. Once identified, efforts to marshal customer property often required litigation and complex negotiation.
The Trustee is grateful for the guidance of the Securities Investor Protection Corporation and the assistance and cooperation of the Securities and Exchange Commission and the Commodity Futures Trading Commission.
The 100% customer recovery does not diminish the consequences of the unprecedented customer property segregation failure that led to MFGI’s liquidation, including the length of time customers have been without their property.
* Number of 4d customers: 24,020
* 4d customer property returned: $5.4 billion
* Number of 30.7 customers: 2,047
* 30.7 customer property returned: $880 million
*Number of securities customers: 428
* Securities customer property returned: $376 million
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.
Media Contacts for MF Global Inc. Trustee: Kent Jarrell, 202-230-1833; Jake Sargent, 202-569-5086