JMF Global Inc. Trustee seeking authorization for distributions to Secured and Unsecured General Creditors
James W. Giddens, Trustee for the liquidation of MF Global Inc. (MFGI), on Tuesday filed a motion with the U.S. Bankruptcy Court for the Southern District of New York, Honorable Judge Martin Glenn presiding, seeking approval to make 100% distributions on allowed secured, administrative and priority general creditor claims and a first interim distribution of approximately 20% on unsecured general creditor claims.
The Trustee is proposing to distribute $295 million to holders of secured, administrative, priority and unsecured general claims, with the majority being distributed to holders of unsecured claims. The Trustee is also seeking to establish a reserve of $462 million on account of unresolved claims that are before the court and do not have a final determination. The Trustee expects interim distributions to allowed unsecured claims to be followed by additional distributions at a future date as required reserves are reduced.
With this filing, the Trustee is fully protecting the MFGI estate and respecting the due process rights of all.
“From the beginning, we have worked aggressively and diligently to pay customers 100% and marshal assets for distributions to the general estate, which were two goals that many thought would not be possible,” Giddens said. “Both goals have now been achieved, and I am satisfied that we are positioned to make these distributions.”
The Trustee will continue to diligently attempt to work through unresolved claims and other disputes in an attempt to reduce the reserves required to be held to meet the obligations of all parties.
This significant progress in the administration of the general estate follows the Trustee’s announcement in April 2014 that MFGI’s former public customers with allowed claims would receive a final, 100% distribution. Distributions to customers are now virtually complete, with a total of $6.7 billion returned to over 26,000 securities and commodities futures customers.