U.S. Bankruptcy Judge Martin Glenn is “surprised and disappointed” by the mounting legal costs incurred by Jon Corzine and other former MF Global Holdings executives. But he signed off on another $7.5 million for them, anyway.
Glenn raised his “soft cap” for defense costs from MF Global’s insurance to $55 million. The judge called the move a “stopgap” as he continues to mull whether Corzine and the others, including former chief operating officer Bradley Abelow, will need to continue to ask his permission to draw from the insurance policy, which still has more than $215 million available.
“I’m not using this as a way of avoiding the decision,” Glenn insisted.
Glenn said earlier this year that he expected an initial $30 million allocation to cover all costs. But with the total now approaching double that, the matter hasn’t moved past discovery yet—and Corzine and the other defendants haven’t even sat for depositions yet.
“It’s troublesome,” he said.
The defendants, more than a dozen in total, face a host of lawsuits stemming from MF Global’s 2011 failure.