Bloomberg News

MF Global Canada Trustee Ordered by Court to Pay Clients

November 25, 2011

Nov. 25 (Bloomberg) -- KPMG Inc., the court-appointed trustee for the Canadian unit of MF Global Holdings Ltd., was ordered to make cash payments to the bankrupt company’s 2,500 foreign exchange customers in the country.

Payments will be made within seven business days, KPMG said today in a statement. The trustee said it has “substantially” completed the transfer of MF Global Canada assets to RBC Dominion Securities, a unit of Toronto-based Royal Bank of Canada.

Customer accounts of MF Global believed to hold $5.45 billion were frozen Oct. 31, the day after the New York-based company reported a shortfall in funds that are required to be segregated under rules of the U.S. Commodity Futures Trading Commission.

The Canadian Investor Protection Fund applied for a bankruptcy order for MF Global Canada on Nov. 2. The Ontario Superior Court granted an order allowing KPMG to make the cash payments, according to the statement.

--With assistance from Doug Alexander in Toronto. Editor: David Scanlan

To contact the reporter on this story: Sean B. Pasternak in Toronto at spasternak@bloomberg.net.

To contact the editors responsible for this story: David Scanlan at dscanlan@bloomberg.net; David Scheer at dscheer@bloomberg.net.


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