MF Global Inc. Trustee Begins Distributions to Secured and Unsecured General Creditors
October 30, 2014 – New York, New York – James W. Giddens, Trustee for the liquidation of MF Global Inc. (MFGI), is commencing the process of sending out $551 million in distributions to general creditors who have made allowable claims against the MFGI estate.
The Trustee will begin mailing checks to claimants on Friday Oct. 31, 2014, which is the third anniversary of the bankruptcy of MF Global. These distributions will be as follows:
- $518.7 million will go in an interim payment to unsecured general claimants and will cover 39% of their allowed claims (the unsecured general creditor claims include claims filed by introducing brokers, trade vendors, employees, and others); and.
- $32.3 million will to go to priority administrative and priority claimants and will cover 100% of their allowed claims. (The secured claims consists of mainly employee wage priority claims and CME Group claims).
Following these general creditor distributions, a reserve fund of $289.8 million will be held for unresolved unsecured claims and a reserve fund of $9.9 million will be held for unresolved priority claims.
The Trustee anticipates being able to make further substantial distributions to general creditors as claims are resolved and further assets become available for distribution.
“We are pleased to reach another significant milestone in resolving the claims against MF Global Inc. on the third anniversary of the bankruptcy,” said James W. Giddens, MFGI Liquidation Trustee. “We have already completed the return of assets to former customers and expect to make another significant distribution to unsecured general claimants in the first half of 2015.”
The current distributions were approved by Judge Martin Glenn of the U.S. Bankruptcy Court for the Southern District of New York. The Trustee has already delivered $6.7 billion to completely satisfy the allowed claims of more than 26,000 former securities and commodities futures customers of MF Global.
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.