(Updates with trustee’s filing in second paragraph.)
Dec. 13 (Bloomberg) -- Highridge Futures Fund LP’s $50 million account with defunct MF Global Inc. has been located and a portion of the balance could take several weeks to transfer, the trustee liquidating the brokerage said in a court filing today.
Trustee James Giddens said $30 million from one of Highridge’s two cash accounts is part of a third transfer of funds back to customers that was authorized yesterday. The transfer “is logistically complicated” and some transfers could take several weeks to occur, lawyers for Gidden said in a court filing today.
Other Highridge funds are under the control of MF Global’s foreign former affiliates and “the trustee is not in the position to make any meaningful distribution of those funds at this time,” the lawyers said.
Giddens urged a bankruptcy judge to reject Highridge’s request to immediately transfer the funds, saying demands for individualized treatment is unfair to other account holders.
Highridge had said in a court filing that the money was missing and Giddens had failed to provide information about the whereabouts of the funds. Highridge described itself in the filing as a registered commodity pool incorporated in Delaware, with a general partner that is an Illinois company. Its account contains mostly cash and also unsettled commodity positions.
Giddens has transferred about 38,000 commodity accounts to other firms, and said he plans to sell 330 securities accounts. Three transfers of collateral made and pending will give commodity customers about $4 billion of their assets, according to court filings.
The brokerage case is Securities Investor Protection Corp. v. MF Global Inc., 11-02790, U.S. District Court, Southern istrict of New York (Manhattan). The parent’s bankruptcy case is MF Global Holdings Ltd., 11-bk-15059, U.S. Bankruptcy Court, Southern District of New York (Manhattan).
--With reporting by Linda Sandler in New York. Editors: Peter Blumberg, Michael Hytha
--With assistance from Linda Sandler in New York. Editors: Peter Blumberg, Michael Hytha
To contact the reporter on this story: Karen Gullo in San Francisco at email@example.com
To contact the editor responsible for this story: Michael Hytha at firstname.lastname@example.org